MINUTES OF EVIDENCE TAKEN BEFORE THE EXPENDITURE COMMITTEE

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4 February, 1975.]

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propose to reduce the number of Anglo-French Gazelles to be purchased. As far as the Anglo-French Lynx is concerned, we are not proposing any change in the programme to which we are committed with our French partners;

* The reductions proposed in the CVR(T) family of light tracked vehicles are being discussed with the Belgian Government, with whom we have a production-sharing agreement. We intend to make a sub- stantial reduction in follow-on orders for Sultan, Spartan and Samaritan, but the numbers have not yet been determined. *

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24. There will be other savings as well. The Army's programme differs from that of the other Services in being smaller and also in being made up of a wide range of comparatively low-priced items, so there will have to be a number of economies made in its whole spectrum. Such measures will comprise cancellations of some requirements, reductions in quantities, and the deferment of certain items of development. These will range across the whole programme, covering arms and ammunition, fighting and load-carrying vehicles, bridging equipment, guided weapons and electronics. It is too early yet to specify these measures precisely but a number of options are being discussed with the firms concerned with a view to reaching decisions by the end of February.

ROYAL AIR FORCE

Combat Air Forces

25. As was made clear in the December 3rd Statement we propose that our plans for the combat air forces committed to NATO on the Continent and in Britain will be unaffected by the Review. The numbers of aircraft so committed would not be changed; and planned improvements, for example to our ground attack and air defence capabilities by replacing the Phantom with increased numbers of Jaguars, and by using Phantoms for air defence, will continue.

MRCA

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26. The UK planning requirement for MRCA is for 385 aircraft of which * would be the Air Defence Variant. We propose to reduce the rate of deliveries of the aircraft in order to reduce the annual level of expenditure in the later years of the costing period, which will result in costs being spread over a longer period. A reduction by about one-third in the presently planned rate of delivery is envisaged but the precise arrangements will have to be worked out with our partners. To avoid any gaps in the front line, existing squadrons of strike and air defence aircraft would remain in service until their replacement MRCAS were delivered.

Maritime Patrol Aircraft

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* We also propose to end the detachments to Singapore of up to 4 aircraft which have up to now been provided from the UK based element of the maritime patrol force. If maritime reconnaissance were to be necessary East of Suez in future, a number of different airfields might be used, including Hong Kong, Singapore and Diego Garcia among many others.

Transport Aircraft and Helicopters

28. Compared with previous plans, the fixed wing element of the RAF transport force would be reduced from a current front line strength of 115 to one of 57 by early 1976. We intend to disband entirely the older Comet and Britannia squadrons as well as the Andover tactical transport force--in all 39 aircraft. The number of VC 10 and Hercules aircraft in use would be reduced by about a quarter (from 66 to 46) and, subject to the outcome of consultations with our Allies, the Belfast squadron would continue in service. These changes become possible as a result of reduced commitments overseas and in specialised reinforcement capabilities and are expected to result in savings of the order of

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