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CONFIDENTIAL
the proportionate shares of the defence budget based on 1974
Survey prices for 1974-75 and 1979-80 to 1983-84 are broadly:-
E 35%
E
40%
M 47%
M 43%
О 18%
1974-75
(fig. 5)
17%
Annual
average 1979-80
83-84
78.
The Royal Navy's share of
the defence budget is planned to increase because the Navy is
entering a period of re-equipment;
but this increase has been
substantially modified by the reduction in the size of the new con-
struction programme including the decision not to replace the
present amphibious lift with purpose-built ships. Significant
savings in Army equipment have been offset by a positive decision
to keep Army manpower and combat capability at the level necessary
to enable it to carry out its primary tasks. The large reductions
in Royal Air Force transport aircraft are offset by the decision to
retain, and i n some cases improve the strike, attack and
air dcfence airforces committed to NATO. An approximate breakdown
between the Services is:-
1.37
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CONFIDENTIAL