§ 59. Mr. Hamlingasked the Chancellor of the Exchequer what information he has concerning the cost of defence and its effect on the balance of payments problem.
§ Mr. CallaghanDefence 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.