§ Mr. CousinsTo ask the President of the Board of Trade what provision in the US/EC agreement on limitation of airline product development subsidies is made for spillover effects from defence programmes; and what monitoring mechanisms for this agreement are in place.
§ Mr. SainsburyThe agreement limits all indirect Government support which benefits the development or production of civil aircraft, whether or not such support was originally directed towards military projects. These limits are 3 per cent. of annual commercial turnover of the civil aircraft industry, or 4 per cent. of the turnover of any one firm.
The agreement provides for an annual exchange of information between the parties and twice-yearly meetings.