W. German Garrison British Costs To Be Studied

Press, Volume CVI, Issue 31119, 23 July 1966, Page 15

W. German Garrison British Costs To Be Studied

(N Z.P A. Reuter—Copyright) BONN, July 22. Britain and Germany are setting up a joint Ministerial commission to consider how Bonn can cover the estimated £94 million cost of stationing 59,000 British soldiers and airmen in West Germany.

The formation of the commission was announced in a com-' munique yesterday after talks between the British Chancellor of the Exchequer, Mr James Callaghan, and the West German Finance Minister, Dr. Rolf Dahlgruen. Mr Callaghan warned Dr. Dahlgruen that Britain would reduce th • size of her forces in West Germany unless Bonn covered the full foreign exchange cost of keeping them there. The commission, comprising the British and West German Ministers of Finance, Foreign Affairs, Defence and

Trade and central bank governors, will report to the two governments at the end of September, .the communique said. German Interest West Germany at present covers about £54 million of the foreign exchange costs under the current agreement with Britain which expires next March. But the remainder of the costs are a drain on Britain’s vital foreign currency reserves. The communique said Dr. Dahlgruen had again emphasised his government’s interest in keeping the British forces in West Germany. Dr. Dahlgruen said he had again made it very clear that he considered direct payments from the West German Budget impossible. West Germany is in economic trouble, too, and is also expected to fall 600 to 700 million dollars short in its commitment to maintain the United States Seventh Army on its territory.