To ask the Secretary of State for Defence, whether his Department's contracts for (a) F-35B Lightning II, (b) AH-64E Apache Guardian, (c) E-7 Wedgetail, (d) CH-47 Chinook, (e) Trident missiles and (f) Protector UAV are denominated in US dollars.
12 July 2022
The position in respect of these programmes is as follows:
F-35B Lightning: The F-35 programme is managed through a US Government F-35 Joint Program Office (JPO) based in the USA. The F-35 JPO places all of its contracts under US law and US federal acquisition rules and regulations. Consequently, all of the JPO's contracts are denominated in US dollars and the UK makes its payments to the JPO in US dollars. The F-35 JPO places the F-35 contracts with the F-35 industry/suppliers and makes the contractual payments to the F-35 industry/suppliers on behalf of the F-35 Partner Nations.
AH-64E Apache: The aircraft procurement and initial support is through a Foreign Military Sales (FMS) case with the US government and UK has no direct contract with the manufacturer. The FMS case and payments are denominated in US Dollars. The Long Term Training and Support Service to provide support to the fleet is through a contract with Boeing UK. The contract and payments are dual denominated in Pound Sterling and US Dollars according to each specified line-item.
E-7 Wedgetail: The acquisition contract is denominated in Pound Sterling, US Dollars and Australian Dollars. Payments to the contractor are made in the currency denominated in the contract.
CH-47 Chinook: The majority of contracts supporting the current fleet are priced in Pound Sterling. Boeing, as the Design Organisation of the Chinook Aircraft, and US based sub-contractors, do attract US Dollars payments and therefore some of the contracts are dual denominated. Payments are therefore made in both Pound Sterling and US Dollars in accordance with the terms of the contract. Separately, the Chinook Capability Sustainment Programme, which is the acquisition of 14 new Extended Range (H-47(ER)) aircraft via a FMS arrangement with the US Government, is priced and payments are made, in US Dollars.
Trident Missiles: The supply of the Trident Weapon System is managed through a government-to-government arrangement under the Polaris Sales Agreement (as amended for Trident in 1982) and payments are made to the US Department of Defense in US Dollars. Related in-service support contracts with UK companies are paid in Pound Sterling.
Protector UAV: Protector is being acquired through a combination of Direct Commercial Sales contracts with General Atomics - Aeronautical Systems Inc. and FMS. The contracts are denominated, and payments are made, in US Dollars.