HC Deb 22 February 1967 vol 741 cc319-20W
Mr. Stratton Mills

asked the Chancellor of the Exchequer if he will now detail the composition of the £100 million reduction in Government overseas expenditure in 1967–68 or give the date on which the information will be available.

Mr. Callaghan

The Defence White Paper showed savings in overseas defence expenditure of £47½ million in 1967–68, building up to an annual rate of about £75 million by the end of that year. These forecasts take no account of changes in the balance of outgoings and receipts in respect of our forces in Germany, which will depend on the outcome of our discussions with the Federal Republic and with the United States. In addition, as my right hon. Friend the Minister of Overseas Development has announced, a reduction of £20 million has been made in the planned aid programme for 1967–68 as compared with the 1966–67 target. Savings have also been made of £1½ million on expenditure on military aid, and £1 million on representation and in formation services overseas. These savings total respectively £70 million in 1967–68 and a rate of about £97 million by the end of the year. Against this, contingency costs for Zambia falling in 1967–68 may have some counter-balancing effect against these savings.