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Awacs

Volume 124: debated on Wednesday 9 December 1987

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To ask the Secretary of State for Defence what is the cost of the seventh AWACS aircraft.

[holding answer 1 December 1987]: The cost of the seventh AWACS aircraft cannot be disclosed for reasons of commercial confidentiality. However, the favourable movement of the sterling-dollar exchange rate since March has meant that the price is lower than that agreed for each of the first six.

To ask the Secretary of State for Defence what is the total value of contracts that must be placed by Boeing before 18 December 1994 now that seven AWACS aircraft have been ordered.

[holding answer 1 December 1987]: The total value of contracts is expected to be in excess of 1ยท5 billion dollars.

To ask the Secretary of State for Defence what are the cost penalties if Boeing fail to honour the agreed AWACS 130 per cent. offset arrangements by 18 December 1994.

[holding answer 1 December 1987]: The offset agreement with Boeing is an integral part of the contract for the purchase of the AWACS system. Any breach of the agreement would therefore constitute a breach of the contract and, although there are no express damages identified in the contract, the Government would have recourse to English law in respect of perceived damages.