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SUGGESTED FORM OF STATEMENT ANNOUNCING Page 205 CHANGES IN THE DEFENCE PROGRAME
For some months the Government have, together with the Chiefs of Staff, been reviewing the country's defence policy in the light of the present international situation, and of the technical advances of recent years.
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The three-year re-armament programme, which was initiated after the outbreak of hostilities in Korea, was designed to secure a rapid build-up of our defensive strength. By and large this programme, both in regard to production and military training, is making excellent progress and is steadily increasing our ability to defend these islands and to fulfil our overseas obligations to the Commonwealth and N.A.T.O.
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However, our problem is not confined to the rebuilding of our armed strength over a three or four year period. We have to consider also the economic and military implications of maintaining it for an indefinite time to meet a standing threat of unknown duration.
4. In considering this problem we have had to take into account the important changes which have been taking place in the military situation. These include the rapid expansion of atomic power in the United States and the development of the atomic weapon by Russia; the advent of jet aircraft capable of flying at very high altitudes and at speeds close to, or beyond, that of sound; the great increase in the range of submarines; the introduction of new types of mines; and the progress made in the development of guided missiles.
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These and other technical advances call for revisions in our overall strategic conception, which will entail alterations in the disposition of our military manpower and some change of emphasis as between the various sectors of our rearmament effprt. In consequence, certain parts of the defence programme, to which greater importance is now attached, will need to be expanded or accelerated, whilst other elements which have become less essential or urgent can be curtailed or spread over a longer period.
6. It does not, however, follow that in cases where economies in Service requirements are found possible,production will necessarily be cut back. In a protracted period of armed peace, such as the present, one of the most important factors in our defence is the creation of an adequate war potential. We shall, therefore, wherever possible, use any production capacity which may become surplus to the needs of our own forces, for the manufacture of equipment required by the rest of the Commonwealth, N.A.T.O, and other friendly countries.
7. In this way we hope to be able, without extra cost, to maintain and in some cases even expand our war potential, whilst at the same time making an additional contribution to the strength of the free world. To the extent that they export
equipment to countries outside the sterling area or to sterling countries who would otherwise have to import from outside the area, the industries engaged in defence production will, like other exporting industries, be helping to redress our balance of payments.
8. It is clear that in our present economic situation, this country, which for its size is making a greater defensive effort than any other country in the world, cannot accept any addition to the burden which it is already bearing. The