SECRET UK EYES A

tasked the F&CT Committee to produce for the next TSSG meeting in

November, a report on the following:

a.

Policy objectives for F&CT.

b.

Pricing Policy.

C.

Forecast demand.

a.

e.

f.

Effects of forecast demand on training resource levels.

The possible involvement of commercial organisations in

the provision of F&CT.

An explanation of the way in which any recommended

charges would aid the achievement of policy objectives.

60.

DEVELOPMENTS IN THE MANAGEMENT OF MILITARY ASSISTANCE

Expenditure on each of the three subsidy funds (UKMTAS, DPF and DSF) is analysed at Annex E. This indicates that Southern Africa has a major priority so far as UKMTAS funding is concerned, reflecting the size of the training assistance in Zimbabwe and Mozambique. This is likely to continue in the

medium term, particularly if the UK provides assistance to a newly independent Namibia as has already been offered by the

Prime Minister. The spread of disbursements on the DPF is more even, with the main efforts being made in the Caribbean, the Gulf

and East and Southern Africa.

61.

DPF Management Group. Quarterly meetings of the DPF

Management Group have encouraged the rational application of DPF

to specific defence objectives. The system is being continuously improved, so that the right countries receive the right level of

subsidy. However, the fund has remained at a cash value of £5m

since 1982, and its spending power may need to be reviewed in the

light of the 1989/90 outturn. So far, despite the real fall in its value, the DPF has consistently underspent. It is not easy to predict future calls on the DPF, but it is possible that the Far East may assume increasing importance as greater reliance is placed on the FPDA as the principal manifestation of UK military interest in the region once the Hong Kong garrison starts to run down.

SECRET UK EYES A

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