§ Mr. Beaneyasked the Chancellor of the Exchequer what is the basis of the estimate of overseas military expenditure in 1963.64 given in the balance of payments statistics published in Economic Trends for September, 1964, and issued by the Central Statistical Office which gives a figure of £264 million which, including other grants of £31 million, produces a total of £295 million.
§ Mr. DiamondThe figures are those of actual overseas military expenditure and other grants, obtained from quarterly returns submitted to the Treasury by the Departments concerned. The figures for the latest quarters are provisional.
In the main, overseas military expenditure consists of local purchases of supplies and services—including expenditure on overseas works—contributions to common defence projects, e.g., N.A.T.O. infrastructure programmes, personal expenditure in overseas currencies by Service personnel, and payments to locally engaged staff.
Other grants, which are mainly of a military nature, consist of cash grants and goods and services provided to overseas Governments by the United Kingdom Government without charge.