§ Lord Hylton
asked Her Majesty's Government:
Whether it is true that they hold £300 million of Iranian Government funds in respect of tanks that were never supplied, 100 of which were subsequently sold to Jordan; what claims have been lodged by the Government against Iran for cancellation of orders, and what counterclaims have been made by Iran.
§ The Minister of State, Ministry of Defence (Viscount Trenchard)
Her Majesty's Government are not holding £300 million of Iranian Government funds in respect of tanks. Funds in respect of the tank contract were received by International Military Services Limited and were passed to the Ministry of Defence as required, to fund the development and manufacture of tanks and related equipment for Iran under the terms of the contract. Some tanks and equipment were delivered to Iran before the contract was repudiated by the Iranian Government. The remaining funds have been used to cover work in progress and to meet the termination claims of sub-contractors following the repudiation of the contract. An audited termination account is at present being finalised and is expected to be submitted to the Iranian Government in the near future. The Iranian Government have been kept informed of progress on the preparation of this termination account.
House adjourned at thirteen minutes before seven o'clock.