SECRET UK EYES A
own defence industries by various types of subsidies and provide financial support for defence exports thus distorting normal market forces.
46.
Customer Base. The UK defence export performance is dominated by one or two major customers, making our position vulnerable to the loss of those markets, for whatever reason, in the future. Whilst continuing
continuing to foster relationships with those key customers, the UK industry needs to broaden its export customer base, in particular in 00A countries.
47.
Exportability of UK Procured Equipment. Much of the equipment developed for the UK Armed Forces is found to be unsuitable for the export market for various reasons, including security, over-sophistication, and cost. It is essential for the future good of the defence industry that more attention is paid to exportability of equipment at the early stages of design and development.
48. UK Defence Export Prospects. 1990 was a good year for UK defence exports, reversing the downward trend of the previous three years. We are well placed in the key future markets of the Middle and Far East, and should also be able to maintain our market share in the North American and European markets which, although smaller, will remain important. Our target is a 10% share of the world defence export market over the next 5 years. In terms of equipment sectors, a real prospect for growth appears to be in defence electronics in which the UK is particularly strong, being the world's second largest supplier in recent years. Success in this area in particular and the whole field generally will depend on maintaining investment in research and development and on the continuing support of Ministers, Service Chiefs, FCO diplomatic staff and attaches abroad. Overall the market is likely to decrease but it will still present enormous opportunities and challenges to UK defence companies. Further statistics and comment on sales patterns are at Annex N.
OBJECTIVES FOR OOACG 1992
[to be decided at 00ACG Meeting 7 Nov 91]
CONCLUSIONS
[to be drawn at 00ACG Meeting 7 Nov 91]
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SECRET UK EYES A