§ Mr. Arthur Lewisasked the Secretary of State for Defence (1) whether he will give, at the latest convenient stated date, the total foreign exchange costs for the British troops in Germany; to what extent these are expected to rise in the next year; how these figures compare with each of the last six years; and to what extent the off-set costs arrangements are reduced by the Treasury Bond purchase by the Germans and their later repayment with interest;
(2) whether he will publish a detailed statement of the actual cost in sterling and foreign currency for British troops in Germany for each year for the longest 331W convenient stated period; to what extent in each year the German off-set costs fell short of Great Britain's expenditure in Germany; and to what extent his new arrangement for extra troops to be sent
COST OF BRITISH FORCES IN GERMANY (EXCLUDING BERLIN) Estimtes of Budgetary cost (1) Estimates of local defence expenditure(2) Value of offset provisions(3) Difference between columns (b) and (c) (a) (b) (c) (d) 1955 … … — 6 — 6 1956 … … — 12 — 12 1957 … … — 60 38 22 1958 … … — 57 12 45 1959 … … — 51 24 27 1960 … … — 57 12 45 1961 … … — 60 — 60 1962 … … — 65 107 34 1963 … … — 76 1964–65* … … — 82 175 75 1965–66 … … — 84 1966–67 … … 169 84 1967–68 … … 180 89 50 39 1968–69 … … 207 94 77 17 1969–70 … … 197 105 168(4) 50 1970–71 … … 205 113 NOTES: * The conventions for recording the figures were changed to a financial year basis at this point. (1) These estimates are for B.A.O.R. alone. For reasons which have been explained to the House [Vol. 775, Col. 387] it is not the practice to provide budgetary costs of British forces as a whole in Germany, but since 1966 the cost of B.A.O.R. under functional costing conventions has been published at Annex D of the annual Statement on the Defence Estimates. These figures are shown in Column (a) of the Table. They include the cost of elements of B.A.O.R. at present temporarily based in the United Kingdom. (2) Up to 1954 all our local defence costs in Germany were met in full by Germany. For 1955 and 1956 the expenditure figures are net of German payments of local costs. The figure for 1970–71 does not cover the effect of recent pay increases, such as the military salary scheme which could add £3 million to £5 million, or of the decision to return 6 Brigade and associated units to Germany (see note (3) below). (3) The figure for 1969–70 and 1970–71 is the sterling equivalent at current exchange rates of the sums specified in the latest offset agreement (Cmnd. 4199) (where they are denominated in Deutschemarks and U.S. dollars). It does not cover the supplementary offset arrangement which has been made in respect of the decision to return 6 Brigade and associated units to Germany. The increase in local defence expenditure in Germany in 1970–71 on account of the planned return of 6 Brigade and associated units is about £1 million net, taking into account the offset arrangements recently announced [Vol. 797, Col. 431]. (4) The £168 million includes a Government to Government loan of $125 million (U.S.) (E52 million). The loan is at an annual interest rate of 3½ per cent. and is repayable at the end of 10 years.