§ Mr. Derek Pageasked the Secretary of State for Defence what proportion of the United Kingdom's adverse balance of trade with Europe is represented by the costs of the British Army of the Rhine.
§ Mr. DiamondI have been asked to reply.
The foreign exchange cost of our forces in Germany was £86 million in 1964. The Federal Government has recognised the burden which this large component of our overseas military expenditure presents and is making offsetting purchases in the United Kingdom. There is no direct relationship between this expenditure and the balance of United Kingdom visible trade with Western Europe, which, including United Kingdom exports under the offset arrangements, was favourable by £77 million last year. Nevertheless, both figures are important components of our overall balance of payments accounts.