4
EXPORTS OF DEFENCE EQUIPMENT
(Explanatory Notes)
195
Page 177
Aircraft
1. The orders received for aircraft shown in Columns 1 and 4 of the above table relate mainly to obsolescent types of jet aircraft (e.g., Vampire, Meteor, Venom); and piston-engined machines (e.g., Chipmunk, Bristol Freighter), aero- engines and accessory equipment. Most of these exports will be to N.A.T.O. and Commonwealth countries, but there are also substantial orders from such countries as Switzerland, Sweden, Iraq and Venezuela. Having regard to the impending cuts in Service expenditure, they could probably be provided without any very appreciable interference with deliveries to the Royal Air Force. The values shown relate mainly to firm orders approved by the Government, but they also include a few requirements approved but not yet covered by contract, and one or two requirements not yet formally approved but on which no difficulty is expected.
2. The estimate of £8 million for further possible orders (Column 7) relates almost entirely to Canberras, Venoms and Meteors. This figure could be increased were it not for the restrictions upon exports to certain countries, such as Egypt.
3. The latest information from N.A.T.O. suggests that we shall receive orders from the United States for the off-shore purchase of at least 360 Swifts worth £25 million. This may be improved upon as a result of the discussions to be held shortly in Washington. Advance payments are likely to be received during the next 18 months, but no account is taken of these in the table, which relates to deliveries of finished equipment.
Ammunition
.
4. Exports of ammunition to non-sterling countries shown in Columns 1 and 4 relate in the main to off-shore orders received from the United States for 300 in., 90 mm. and 155 mm. ammunition and 3.5 in. rockets. In addition, the sale of Centurion tanks will give rise to further substantial orders for ammunition.
Armoured Vehicles
5. Of the Centurions required by Canada, 110 have been included under Column 1 as a firm order for 1952 and 145 under Column 5 as a specific enquiry
for 1953.
:
6. Since the contracts have not yet been signed, the Centurions for off-shore purchase by the United States are shown as enquiries under Columns 2 and 5. 135 have been included for 1952 and 200 for 1953. The total order is for 535. Our rate of production would permit earlier deliveries of the balance.
7. The table also takes into account orders and enquiries for Centurion tanks from Australia, Pakistan and other sterling countries.
Wheeled Vehicles
8.
There will be substantial orders for vehicles for Belgium under the Draper These are not shown under the heading of "Wheeled Vehicles," but are included in the total shown for the Draper Plan as a whole.
Plan.
9. In estimating other possible orders allowance has been made in Column 7 for the fact that part of the expected demand will have been met under the Draper Plan. The figure of £15 million is made up mainly of 1-toh and 3-ton G.S. Lorries, the British Jeep, and civil types, which are more or less interchangeable, for which there are known to be requirements in many countries.
Miscellaneous
*
10. The £12 million shown in Column 7 under the heading " Miscellaneous as possible orders from the sterling area is an estimate to cover some of the Australian requirements presented by Mr. Menzies as well as requirements from other Commonwealth countries.
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1Paged 78 ofiña for the non-sterling area is an alloa 478 BEZBR
additional off-shore orders out of the United States 1953 appropriation.
The Draper Plan
12. Exports under the Draper Plan cannot be sub-divided. The Belgians have agreed to take $25 million of equipment from the United Kingdom by 30th June, 1954, but the list of stores has not yet been finally agreed.
Electronics
13. The main electronic products, for which contracts have been placed or are being negotiated, are radar sets A.A. No. 3 Mk. 7 and sonobuoys. Enquiries are now being received for a wide range of other electronic equipment.
APPENDIX B
SWITCH OVER OF CAPACITY FROM DEFENCE ORDERS TO CIVIL EXPORTS WITHIN FACTORIES
1. Many firms with substantial defence orders are also manufacturing civil products for export. Some of these firms could increase their exports quickly if their defence orders were reduced. The English Electric Company is an example. Within their Preston factory they are both making Canberra bombers and diesel- electric rolling stock for export. Some lightening of their Canberra programme would enable them to divert labour and factory capacity to their civil work and would quickly be reflected in increased exports.
2. In the motor industry firms such as Albion, A.E.C., Leylands, Scammell and Thornycroft could probably increase their exports of heavy commercial vehicles for which there is a good market overseas, if Service orders were reduced or spread over a longer period. Similarly the Austin Company would be able to export British Jeeps if the War Office were able to accept a reduced rate of deliveries to them.
3. In the electronics field certain firms (such as Marconi, E.M.I., S.T.C., G.E.C., and B.T.H.) which have important defence orders are also exporters of capital equipment. If the defence load upon them were lightened, they would be able to give earlier delivery of export orders and attract increased overseas business.
4. Exports could also be assisted by some reduction in the defence orders for Engineer stores, much of which, if not identical, is very similar to civil products: made by the same firms for export. These include contractors' plant, cranes, diesel locomotives, cistern wagons and other heavy equipment.