§ Mr. MeacherTo ask the Secretary of State for Defence what was the cost of the extra training on military strategy and other defence items promised as part of the arms deal negotiated with Malaysia between 1985 and 1988; who was to provide it; how many military personnel were involved; and for what purpose such training was provided.
§ Mr. AitkenMy Department has provided only technical training under the terms of the 1988 memorandum of understanding signed with Malaysia. This training has taken place both in the United Kingdom and Malaysia, and has included the provision of loan service personnel. Further details, including costs, are confidential between the two Governments.
§ Mr. MeacherTo ask the Secretary of State for Defence what was the difference between the normal commercial rate and the concessionary rate offered by the United Kingdom for the purchase of arms to Malaysia under the 1988 memorandum of understanding; how much was actually paid to make up this difference, under what heading of expenditure this was paid; and what assessment he has made of the consistency of such concessionary rate with the Washington convention on export credits and other international agreements.
§ Mr. AitkenI would refer the hon. Member to the reply I gave to the hon. Member for Wallsend (Mr. Byers) on 21 February,Official Report, column 69.
§ Mr. MeacherTo ask the Secretary of State for Defence, pursuant to his answer to the hon. Member for Wallsend (Mr. Byers) of 22 February,Official Report, column 69, who heads the special unit set up inside his 96W Department in support of the arms deal to the Malaysians under the 1988 memorandum of understanding; what are its functions: and to whom it is accountable.
§ Mr. AitkenA director heads the Malaysian project office. The MPO exists to provide advice and support to the Malaysian Government in their procurement of defence equipment from United Kingdom suppliers; the director is accountable through the head of the Defence Export Services Organisation to Ministers.
§ Mr. MeacherTo ask the Secretary of State for Defence in what way Her Majesty's Government fulfilled their offer to the Malaysians, under the 1988 memorandum of understanding, to assist in fixing easier terms; if there was any shortfall in the funding by the Malaysian Government; and what are the precedents for making such provisions.
§ Mr. AitkenAll defence purchases by Malaysia under the 1988 MOU have been made on a cash basis. As to precedents, at that time Malaysia was eligible under OECD conventions for export credit at consensus rates.