§ Sir W. Robson Brownasked the Minister of Technology if he will state the past and future cost to this country of the F111 aircraft; and, having regard to the fact that this aircraft is now grounded by the United States defence forces and unacceptable to the United States Navy, if he will also declare that there is no liability on Her Majesty's Government to pay compensation of the order of £50 million for the cancellation of the contract.
§ Mr. J. P. W. MallalieuThe contract for the purchase of F111's placed on our behalf by the U.S. Government included a standard clause about the payment of termination charges in the event of cancellation. These charges we are contractually bound to pay. Our negotiations with the U.S. authorities have not yet been completed but the dollar cost of cancelling the F111, including expenditure already incurred, is likely to be about £25 million. There will also be some additional cost in the United Kingdom as a result of cancelling contracts for equipment placed with British firms.