§ 52. Mr. Tony Lloyd
asked the Secretary of State for Defence if he will explain why the FH70 propellant order has been given to firms in Germany.
§ Mr. Butler
The agreement between the United Kingdom, the Federal Republic of Germany and the Republic of Italy sets out each partner's entitlement to production work within the FH70 programme. The United Kingdom has benefited from an excess of work over its entitlement under that agreement while Germany is in deficit. We are obliged, therefore, to place any new orders in such a way as to aim to restore each partner's work share to the agreed entitlements.