Aircraft From U.S. To Cost £520m

Press, Volume CV, Issue 30998, 2 March 1966, Page 17

Aircraft From U.S. To Cost £520m

(N.Z.P.A. Re ule r—Copy right)

LONDON, Feb. 28

American military aircraft ordered under Britain’s new defence policy would cost £520,000,000, the Defence Secretary, Mr Denis Healey, said in a House of Commons answer today.

Of this, £2OO million would be paid before April, 1970.. The 50 FIIIA aircraft were expected to cost a total of £150,000,000, which included supporting equipment and initial spares, and the British share of the United States research and development costs. About £20,000,000 would be paid before April, 1970. The cost of the Hercules order would be about £70,000,000, of which £20,000,000 would be paid before 1970. Mr Healey said that no final decision had been taken on the exact size of orders for Phantom aircraft, but it was likely that the corresponding figures, on the same basis, would be about £300,000,000 and £160,000.000. Credit Terms

Mr Healey said that the credit terms negotiated with the United States Government would cover the capital cost of the aircraft and associated equipment. Repayment terms, which apply to the Hercules, Phantom and FIIIA programme taken as a whole, provide that

the bulk of repayments will fall due in 1968-1978, being spread as evenly as possible. Interest is per cent. “Under our arrangement with the United States we have the opportunity to enter into a co-operative logistics supply support agreement under which we will enjoy the same production price and other benefit as the U.S.A.F. in respect of the supply of spare parts, modification of kits, repair and overhaul services and engineering support,” said Mr Healey.