HC Deb 09 April 1974 vol 872 cc81-2W
Mr. Ronald Atkins

asked the Secretary of State for Defence what proportion of the foreign exchange costs of keeping British forces in Germany goes to pay German civilians for the use of barracks, roads, railways, and other similar services.

Mr. William Rodgers

In 1973–4 about two-thirds of these costs went on the pay and pensions of German civilians and on local services.

Mr. Ronald Atkins

asked the Secretary of State for Defence what action Western Germany took in 1973 to offset the exchange costs of keeping British forces in Germany.

Mr. William Rodgers

The offset arrangements between the Federal Republic of Germany and the United Kingdom are those agreed in 1971, to run to 1976. Under them Her Majesty's Government receive an annual payment of DM 110 million or £18 million at the exchange rate prevailing at the end of 1973. We also benefit from the Federal Government's agreement to make and promote purchases of British civil and military goods and services. Military purchases by Germany amounted to some DM 480 million over the period of the agreement up to end—June 1973.

Mr. Ronald Atkins

asked the Secretary of State for Defence what were the foreign exchange costs of keeping British forces in Germany in 1972 and 1973, respectively.

Mr. William Rodgers

The foreign exchange cost falling on the defence budget, net of the offset payments, was some £200 million for 1972–73; for 1973–74 the forecast outturn is some £260 million.

Mr. Ronald Atkins

asked the Secretary of State for Defence what proportion of the total cost of keeping British military forces in Germany is paid in foreign currency; and to what extent this affects Great Britain's balance of payments.

Mr. William Rodgers

Søme three-quarters of the total cost, excluding equipment, of the forces in Germany is in foreign exchange. But the overall effect on the balance of payments cannot be precisely quantified because of the difficulty of measuring all the foreign exchange transactions that arise indirectly from the presence of British forces in Germany.