Ministry Of Defence Anglo-American Offset Purchaseagreement (Harbour Tugs) 44. Mr. Bruce-Gardyne asked the Secretary of State for Defence, in the light of Government policy set out in the Defence White Paper with regard to the agreement offsetting the foreign exchange cost of British purchases of United States aircraft, what representations he has made to the Government of the United States of America regarding the rejection of a British tender to build harbour tugs for the United States Navy. The Secretary of State for Defence (Mr. Denis Healey) None, Sir. There are no grounds for such representations. Mr. Bruce-Gardyne Why not? How does the Secretary of State for Defence think that he will get fulfilment of the undertakings in the White Paper about recovery of the cost of the F111A aircraft and other American purchases if these tenders cannot go through? Mr. Healey We have no intention of asking the American Government to subsidise British exports. Under the offset agreement, we are allowed to compete without discrimination against American firms. This was a small order which altogether would have totalled less than £1 million, and factors such as transport costs and lower productivity in British yards prevented us from beating American prices. Mr. Powell Does not the right hon. Gentleman now realise how misleading it was for the Government to talk about ensuring that the costs of the F111A would be offset? Is it not a fact that further invitations to tender have now been withdrawn? Mr. Healey There was nothing whatever misleading. As I told the House the other day, we have already been invited to provide assault tracking to twice the value of the tugs mentioned in the Question. Invitations to bid for two other kinds of ships are now coming in. One invitation to bid for ships was withdrawn because the American specification was about to be changed, but that bid will he renewed in a few weeks' time. South Vietnamese Troops(Malaysia Training Courses) 45. Mr. Russell Kerr asked the Secretary of State for Defence how many British Service men are currently engaged in the training in Malaysia of South Vietnamese troops; what plans he has to increase this and other assistance by Britain to the United States war effort in Vietnam; and whether he will make a statement. Mr. Healey South Vietnamese soldiers have, since 1961, been attending courses at training centres designed primarily for our own and Commonwealth use. The total number of British Service men operating these centres is 55, of whom only three are concerned exclusively with courses for the South Vietnamese. We have no plans to increase this or to give other assistance to Vietnamese forces or to American forces in Vietnam. Mr. Kerr Can my right hon. Friend inform the House how he reconciles his Answer with the Government's professed policy of non-intervention in the disastrous war in Vietnam? Mr. Healey Yes, Sir. We have made it clear that we have no intention of participating ourselves in the fighting in Vietnam or supplying weapons to Vietnam. This remains our policy, but the training of Vietnamese service men started as far back as 1961 under the previous Government and we see no reason why we should not assist in the training of a free country to defend its freedom. Mr. Thorpe Irrespective of the year in which this facility was first offered, is it not a very odd way for a co-Chairman to exercise his neutrality? Mr. Healey I do not know how odd it is, but I must remind the hon. Gentleman that the Soviet co-Chairman of the Geneva Conference is supplying arms on a large scale for the fighting in Vietnam. Mr. Michael Foot In view of the appalling events which are now taking place in South Vietnam in particular, as revealed by the actions of the Buddhists in protest, will my right hon. Friend reconsider and withdraw his statement that the Government of South Vietnam is a free Government? Will he also give immediate orders for stopping even this meagre support for South Vietnam which is now being provided by this method, in view of the barbarous methods of war now being employed by our American allies in Vietnam? Mr. Healey I would have thought that if my hon. Friend regarded some of the methods used in Vietnam as barbarous he would welcome our participation in training the soldiers of South Vietnam to fight in the way which has enabled us to bring confrontation to an end at a minimum loss of blood and treasure.