§ 86. Sir G. Nabarroasked the Secretary of State for Defence what economies he has secured in costs of the British Army of the Rhine during 1966–67 in accordance with his Budget and reduction of forces this year; and what revised estimate of the cost of the British Army of the Rhine 1966–67 he has made following the Prime Minister's conversations in Bonn, mid-February, 1967.
§ Mr. HealeyI would refer the hon. Gentleman to the statement by my right hon. Friend the Chancellor of the Duchy 251W of Lancaster on 12th December, 1966—[Vol. 738, c. 441–451]—about the close connection between the foreign exchange costs of the Services in Germany and the current tripartite talks. As the Prime Minister announced on 16th February, 1967—[Vol. 741, c. 800–808]—it was agreed in Bonn that this issue should continue to be dealt with by the tripartite machinery. Meanwhile, the United States Government will make further purchases in the defence field in the United Kingdom to the amount of £12½ million during 1967 and measures not affecting combat capability have been taken to save about £4 million in 1967–68 and more eventually. The latest forecast of the 1966–67 Deutschemark costs of British Army of the Rhine is about £73 million (£86 million including the Royal Air Force).