HC Deb 17 February 1965 vol 706 c230W
59. Mr. Hamling

asked the Chancellor of the Exchequer what information he has concerning the cost of defence and its effect on the balance of payments problem.

Mr. Callaghan

Defence affects the balance of payments in two main ways: overseas expenditure and the impact on the economy. In the twelve months up to 30th September, 1964, overseas military expenditure was about £300 million including defence aid but excluding military imports for which figures are not readily available. It is difficult to quantify the impact on the economy but at just over 7 per cent. of our Gross National Product, defence expenditure imposes a heavy strain on our resources.