§ Mr. SayeedTo ask the Secretary of State for Defence what progress his Department has made in evaluating the offset reports submitted by Boeing under the terms of the AWACS offset agreement.
§ Mr. SainsburyWe have completed our evaluation of Boeing's first offset report, which covered the period from November 1986 to June 1987. This report listed contracts covering a wide range of items similar to the high technical quality contained in the AWACS aircraft. The contracts were placed with a number of United Kingdom defence contractors and their value totalled $141 million. Following our evaluation, we have agreed with Boeing that a total offset credit of $96.6 million should be allowed. We are now in the process of evaluating Boeing's second 721W report, which covers the period July to December 1987, listing contracts showing a total value of some $192 million.