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continuing to shift, markedly in favour of the Warsaw Pact.

In the Eastern Atlantic Area, NATO's mainly British maritime

forces at immediate readiness for forward defence are already

heavily outnumbered. The Soviet Navy has expanded out of all

proportion to Soviet seaborne trade.

7.

Warsaw Pact air forces and missile systems have also been

improved over the last five years, although the parallel with-

drawal of some obsolete fighters and bombers means that a simple

comparison of numerical strengths does not reflect the introduction

of several hundred technologically more advanced aircraft with

multi-role capabilities, including nuclear delivery. The

MiG-25 FOXBAT all-weather interceptor and reconnaissance aircraft,

capable of mach 3, is being deployed in increasing numbers, and

deployment of a new supersonic medium bomber (BACKFIRE) is

imminent. Large numbers of aircraft shelters have been constructed

in recent years to protect these aircraft on the ground.

8.

Soviet expenditure on defence for 1975 is officially stated

to be 17,430 million roubles, which is represented as a reduction

on the figure for 1974. This is difficult to reconcile with the

facts described above and when substantial additional expenditure

for defence purposes, in particular for military research and

development, is carried on other Soviet budgets. In fact, total

Soviet defence spending for 1975 will be over 30,000 million

roubles and in real terms will show an increase of about 5 per

cent over 1974. The USSR is able to run such a large defence

effort only at the expense of a lower level of spending in other

sectors of the economy and a consequent lower general standard

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