Defence Expenditure (Hansard, 2 February 1990)

§ Mr. Allen
To ask the Secretary of State for Defence what is his latest information on defence budget reductions(a) proposed and (b) implemented by (i) the United States of America, (ii) Hungary, (iii) NATO as a whole and (iv) the Warsaw pact as a whole.

§ Mr. Archie Hamilton
Member states of NATO report their budgetary plans each summer in their response to the NATO defence planning questionnaire. The plans reported in 1989 generally provided for budget increases. We expect the plans reported by the United States in 1990 to reflect the Administration's proposals now before Congress for reductions in defence spending over the next five years.
With the exception of Romania, all Warsaw pact countries have announced reductions in defence spending and there is evidence that these reductions are being implemented. Hungary, whose contribution to total Warsaw pact defence expenditure is very small, announced a reduction of about one quarter in its defence budget for 1989.

§ Mr. Harry Greenway
To ask the Secretary of State for Defence if he has made any estimate of the likely increase or decrease in expenditure of(a) North Atlantic Treaty Organisation and (b) Warsaw pact countries over the next five years; and if he will make a statement.

§ Mr. Archie Hamilton
The plans reported last year to the North Atlantic Treaty Organisation by member states generally provided for modest real increases in defence expenditure in the years immediately ahead. All Warsaw pact countries, with the exception of Romania, announced cuts in defence expenditure in 1989 to take effect in that and subsequent years. We are monitoring the implementation of these announcements.

§ Mr. Rathbone
To ask the Secretary of State for Defence what additional review of defence expenditure he is carrying out in the light of developments in Warsaw pact countries.

§ Mr. David Nicholson
To ask the Secretary of State for Defence what evaluation he has made of the implications of developments in eastern Europe for United Kingdom defence spending.

§ Mr. Archie Hamilton
There are no plans to reduce defence expenditure.