INTRODUCTION

1. Since it took office in June the Government has

critically examined the state of the Armed Forces and the defence programme it inherited;

reviewed defence objectives and priorities;

acted to fulfil its undertakings on defence;

settled future levels of defence expenditure as part of its general review of public expenditure.

2. The Government is determined to restore Britain's security to the high place it must take among national priorities, and to make good as far as possible the damage of successive defence reviews. There are three objectives:

(1) to enable Britain to resume, within her resources, a proper share of responsibility for the preservation of peace and stability in the world; (2) to improve the capabilities of the Armed Forces, to overcome their

manpower difficulties, and to enhance their role in the community; (3) to establish and maintain a sound financial basis on which to develop

and carry out defence policy and plans in the years ahead.

3. This statement summarises the strategic priorities and sets out the major decisions which the Government has already taken to meet its objectives. The decisions cover:

A military contribution to Five Power defence arrangements in South

East Asia.

Royal Navy: aircraft carriers;

anti-ship guided-weapon systems.

Army: structure of the Regular Army;

Territorial and Army Volunteer Reserve (T. & A.V.R.).

Royal Air Force: Jaguar close support aircraft.

Defence Budget levels.

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