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Service Departments (Dollar Expenditure)

Volume 440: debated on Thursday 24 July 1947

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65 and 66.

asked the Chancellor of the Exchequer (1) what sum in dollars he has been called upon to find to meet expenditure overseas in respect of the Armed Forces in the current financial year; and what amount in dollars he expects to be called upon to provide for this purpose during the 12 months ending in the middle of 1948:

(2) what sum in dollars he estimates that he will be called upon to provide during the period mid-1947 to mid-1948, to meet the needs of the Service Departments.

Since the answer is detailed, I will circulate it in the OFFICIAL REPORT.

Following is the answer:

It is impossible to separate dollar expenditure by the Service Departments for the Forces overseas from their general dollar expenditure. Direct U.S. dollar requirements of the Service Departments are estimated to be about 12 million dollars during the 12 months ending in mid-1948. In addition, these Departments will require oil to a value of some £20 million a year, much of which will cost us dollars directly or indirectly. There will also be substantial supplies, including food and materials, involving some dollar expenditure which cannot be closely estimated, as between the military and civilians. There may also be expenditure indirectly involving a dollar liability now that sterling is transferable. The above does not cover the cost of Germany and Austria.