§ Mr. KaufmanTo ask the Secretary of State for Defence, pursuant to the answer to the hon. Member for Islington, South and Finsbury (Mr. Smith) on 11 January,Official Report, column 69, when the arrangement came to an end whereby the purchase of the Trident missile system would be at an exchange rate of $1.50 to the pound sterling.
§ Mr. SainsburyThe dollar cost in the Trident estimate announced to Parliament each year by my right hon. Friend is given at the exchange rate used in recosting the current defence long-term programme. The estimate of £9,265 million, announced in January 1987, was thus based on an exchange rate of $ 1.50 to £1 sterling. The cost of dollar expenditure in the United States is governed by the exchange rate prevailing at the time of puchase of those dollars.