HC Deb 06 December 1965 vol 722 cc37-8W
Mr Rowland

asked the Chancellor of the Exchequer what proportion of any current balance of payments deficit in each year since 1945 has been attributable to overseas defence expenditure.

Mr. Callaghan

It is difficult to evaluate the net impact of this expenditure, part of which gives rise indirectly to receipts elsewhere in the current account; but the figures of overseas military expenditure in the invisibles account of the balance of payments compared with those of the surplus or deficit on current account for each year since 1945 are given in the following table. This information is available in the "United Kingdom Balance of Payments 1965", the corresponding earlier publications, and for the current balance from 1946 to 1951 in "National Income and Expenditure 1965".

£ million
Military Expenditure in the Invisibles Account of the balance of payments (a) Balance on Current Account in the Balance of Payments (deficit-/surplus+)
1946 -374 (b) -230
1947 -209 (b) -381
1948 -113 +26
1949 -110 -1
1950 -100 +306
1951 -123 -365
1952 -137 +170
1953 -139 +151
1954 -146 +121
1955 -152 -157
1956 -174 +209
1957 -157 +216
1958 -180 +330
1959 -167 -132
1960 -206 -273
1961 -225 -14
1962 -243 +93
1963 -249 +105
1964 -274 -412

(a) Excluding defence aid, contributions to international organisations and military receipts other than local overseas receipts.

(b) Including payments by non-Service Departments connected with war disposals and settlements.