§ Mr. Marquandasked the Secretary of State for Defence if he will make a statement on the present position on credit for purchases of Hercules and Phantom aircraft ordered for the Royal Air Force and the Royal Navy.
§ Mr. HealeyThe United States Government has agreed to grant a further credit of $100 million making a total credit of $850 million—about £355 million at the current rate of exchange—to cover the expected remaining cost of capital and initial support requirements for our purchase of Phantom and Hercules aircraft.
The arrangements with the Export Import Bank of the United States provide for extending last years credit agreement, which brought the total for these two types of aircraft to $750 million, from 30th June, 1969, to 31st December, 1969, together with a new agreement for the balance of $100 million at the existing rate of interest of 6 per cent. Credits under the new agreement will be available until 1972.