asked the Minister of Aircraft Production whether he is satisfied that India's capacity to produce aircraft is fully employed; whether any offers or applications by Indian firms to produce aircraft have been declined; and, if so, on what grounds?

My hon. Friend will appreciate that it is not possible for me to disclose details of production plans, but I can assure him that although technical considerations limit India's capacity to produce aircraft, substantial orders have been placed there. The offer of one firm to produce aircraft was declined, after careful investigation, as the project appeared unlikely to be satisfactory. It is hoped, however, that this firm will undertake alternative work.

Can my hon. Friend assure the House that no political or Imperial considerations are being allowed to interfere with the production of aircraft in India?

Certainly, Sir.

The hon. Gentleman says that orders have been given; can he say that production is proceeding satisfactorily?

Orders have been given to one firm by the Government of India; they are producing trainers and bombers, and I believe the work is going on very satisfactorily.