§ Mr. McNamaraasked the Secretary of State for Defence, following the fall in the price of oil, whether British Petroleum and the Royal Dutch/Shell Group are still participating in the scheme to finance the sale of Tornado and other aircraft for the Kingdom of Saudi Arabia in return for crude oil.
§ Mr. Norman LamontThe means by which the Government of the kingdom of Saudi Arabia are generating funds for the purchase of Tornado and other aircraft are matters for that Government. They do not, however, involve Her Majesty's Government or the aircraft manufacturers taking title to oil as payment.
§ Mr. McNamaraasked the Secretary of State for Defence whether, following the fall in world oil prices, Her Majesty's Government are considering a different offset agreement for the sale of Tornados and other aircraft to the kingdom of Saudi Arabia.
§ Mr. Norman LamontNo.
§ Mr. McNamaraasked the Secretary of State for Defence what is the financial effect of the drop in oil prices on the proposed sale of Tornados and other aircraft to the kingdom of Saudi Arabia.
§ Mr. Norman LamontLower oil prices, even if sustained, will have no effect on the price paid by the kingdom of Saudi Arabia for the aircraft.