HC Deb 04 March 1994 vol 238 c69W
Mr. Byers

To ask the Secretary of State for Defence how many people are working in the unit set up to oversee the defence contracts made between United Kingdom contractors and the Malaysian Government as a result of the 1988 memorandum of understanding; and how many of these are based(a) in the United Kingdom and (b) in Malaysia.

Mr. Aitken

There are 22 people working in the Malaysian project office, of which 10 are based in the United Kingdom and 12 in Malaysia—of those, five are locally employed staff.

Mr. Byers

To ask the Secretary of State for Defence if he has given advice to the Malaysian Government since September 1988 on the suitability of United Kingdom companies to carry out defence contracts; and to what extent this advice has included the rating of companies by reliability.

Mr. Aitken

My Department frequently advises on the technical competence of companies, but does not make firm recommendations.

The choice of contractors lies solely with the Malaysian Government, who have negotiated contracts directly with United Kingdom companies.

Mr. Byers

To ask the Secretary of State for Defence what is the total value of the loans made available to the Government of Malaysia since September 1988 to assist them in the purchase of defence exports from the United Kingdom; when these loans will be repaid; and on what terms.

Mr. Aitken

All the defence purchases by Malaysia under the 1988 memorandum of understanding have been made on a cash basis.

Mr. Byers

To ask the Secretary of State for Defence what contracts have been awarded to United Kingdom companies as a result of the 1988 memorandum of understanding with the Malaysian Government.

Mr. Aitken

Since the 1988 memorandum of understanding was signed defence contracts totalling over £1 billion pounds have been awarded to United Kingdom companies by Malaysia. These contracts cover radars and electronic equipment, training aircraft together with a flight simulator, frigates and associated equipment and air defence missile systems.