§ 16. Mr. Stonehouseasked the Secretary of State for Defence to what extent the Federal Republic has agreed to contribute to the costs of maintaining the British Army in Germany.
§ Mr. William RodgersI have nothing to add to the reply my right hon. Friend gave to my hon. Friend the Member for Lewisham, West (Mr. Price) on 12th May.—[Vol. 911, c.176.]
§ 36. Mr. Bagierasked the Secretary of State for Defence what would be the effect on the balance of forces—Warsaw Pact to NATO—in the central front of any further cut in BAOR.
§ Mr. William RodgersAny sizeable reduction in BAOR carried out unilaterally would have a seriously damaging effect on the defensive capability of the Alliance and increase the present imbalance between NATO and the Warsaw Pact in the central region. That is why we have made it clear that we do not envisage any reductions in advance of an MBFR agreement.
§ Mr. Newensasked the Secretary of State for Defence what was the total annual cost in terms of foreign exchange, at constant prices, of keeping British forces in the Federal Republic of Germany both before and after allowing for the FDR offset for each year since 1957.
§ Mr. William RodgersBecause of changing rates of exchange and differing rates of inflation it is not possible to produce a meaningful constant price series over the period. However, the 95W foreign exchange costs and the approximate sterling value of the various offset agreements, concluded for differing periods, are as follows:
Foreign Exchange Costs Approximate Sterling value of each offset agreement £m. £m. 1958–59 … … 55 12 1959–60 … … 52 24 1960–61 … … 58 12 1961–62 … … 61 — 1962–63 … … 68 107 1963–64 … … 72 1964–65 … … 82 175 1965–66 … … 84 1966–67 … … 84 1967–68 … … 89 50 1968–69 … … 94 77 1969–70 … … 110 172* 1970–71 … … 132 1971–72 … … 172 220† 1972–73 … … 206 1973–74 … … 283 1974–75 … … 340 1975–76 … … 403 * The £172 million includes a Government to Government loan of US $125 million. The loan is at an annual rate of interest of 3½ per cent, and is repayable at the end of 10 years. † Includes military equipment purchases of DM926 million up to December 1975.