HC Deb 04 June 1974 vol 874 cc388-9W
Mr. Bruce-Gardyne

asked the Secretary of State for Foreign and Commonwealth Affairs what is the period of denunciation of contracts given in respect of the supply of spare parts for the Chilean armed forces; if he will itemise all those contracts for aircraft, ships and spares with Chile which the Government have decided shall be ended, and those which are to be fulfilled, respectively.

Miss Joan Lestor

I would refer the hon. Member to the statement made by my right hon. Friend the Prime Minister on 21st May in which he said: The policy on spares for these aircraft and their engines should obviously be consistent with the policy on overhaul, and contractual obligations to supply spares will also therefore have to come to an end".—[OFFICIAL REPORT, 21st May 1974; Vol. 874, c. 186.]

I understand that Rolls-Royce is now entering into discussion with the Chilean authorities with a view to reaching agreement on the termination of the contract for spares.

I regret that a punctuation error in the official record of the Prime Minister's supplementary reply following his statement on 21st May could have given rise to the second part of this Question. The relevant reply should have read: The aero-engines contract is subject to a three-months' break clause, which is being invoked. The supply of spares is subject to a reasonable period of denunciation, and that is happening. The denunciation is occurring. With regard to the ships and the spares, I refer (he right hon. Member for Chesham and Amersham (Mr. Gilmour) to the original statement made by my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs in April. I forget the date, but I think he announced on 10th or 11th April the position regarding the ships and the spares for the ships".—[OFFICIAL REPORT, 21st May 1974; Vol. 874, c. 193.]

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