CONFIDENTIAL

3RD DRAFT

operative in Hong Kong early in 1975. A trial is planned to take

place shortly on the use of small mobile computers at inventory

points within brigades. The development of a computer-based system

in support of overseas sales continues. A feasibility study in

the use of computer output on microfilm is well advanced and it is

expected that the introduction of this facility early in 1976 will

achieve worthwhile savings in paper and distribution costs.

Availability of Spares

34. The flow of spare parts from industry has been significantly

reduced as a result of their difficulties over the past year.

Vehicles have therefore been used less to conserve stocks. Since

operational maintenance in, for example, Northern Ireland could

not be stinted, economies have had to be made principally in

training. These constraints on the Army's normal levels of activity

are likely to continue in the immediate future.

THE ROYAL AIR FORCE SUPPORT ORGANISATION

conomy in Support Costs

35. The major review of Royal Air Force manpower and support

requirements, mentioned in Chapter V of the Statement on the Defence

Estimates 1973 (Cmnd. 5231), has already resulted in a saving

of some 8,000 Service and civilian posts and should lead to further

reductions during 1975-76. The present review, together with

various studies directed towards minimising supply and maintenance

costs, forms part of a continuing process to maintain the most

cost-effective support organisation. For example, this year the

replacement supply ADP System becomes operational and will, by

1977, have taken over the functions of individual depot computers.

VI-12

CONFIDENT I AL

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