HC Deb 03 June 1986 vol 98 cc413-4W
Mr. Cambell-Savours

asked the Secretary of State for Foreign and Commonwealth Affairs if he is satisfied that the construction contract awarded to John Mowlem and companies complies with the terms of the lease between Her Majesty's Government and the United States Government on the use of Diego Garcia; and if he will make a statement.

Mr. Eggar

Diego Garcia is not leased to the United States Government. Its use is based on exchanges of notes dated 30 December 1966 and 25 February 1976 between the Governments of the United Kingdom and the United States. I am satisfied that the construction contract complies with the terms of those exchanges of notes.

Mr. Cambell-Savours

asked the Secretary of State for Foreign and Commonwealth Affairs whether he will list those contractors currently engaged on projects on Diego Garcia under the terms of the lease agreement.

Mr. Eggar

There are two major consortia engaged on maintenance or construction projects in Diego Garcia. They are FEBROE, a joint venture between the United States firms Frank E. Basal and Burns and Roe Services; and RBRM, which comprises John Mowlem (UK), Brown and Root and Raymond International of the USA. In addition, RCA (US) and TRW (US) are engaged in the installation of equipment; Overseas Express Inc. (US) is operating tug boats, and Cable and Wireless (UK) is operating the telephone and telex system.

Mr. Campbell-Savours

asked the Secretary of State for Foreign and Commonwealth Affairs what construction contracts are currently being undertaken on Diego Garcia by (a) British contractors and (b) other contractors.

Mr. Eggar

The only contract for construction work in Diego Garcia was awarded to a consortium of Brown and Root, Raymond International and Mowlem (UK). The contract, which is nearing completion, covers the improvement of services and utilities on the island including refuelling arrangements, expansion of storage, warehousing, maintenance and wharf installations and the upgrading of the runway and other airfield support facilities.

Mr. Campbell-Savours

asked the Secretary of State for Foreign and Commonwealth Affairs what is the value of the contract awarded to John Mowlem for its construction works in Diego Garcia by the United Kingdom Government.

Mr. Eggar

The contract in which John Mowlem is engaged with other members of the RBRM consortium was not awarded by the United Kingdom Government. It is a United States Government contract, paid for by the United States Government.