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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT The circulation of this paper has been strictly limited.
It is issued for the personal use o.............................
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CABINET
DEFENCE AND OVERSEA POLICY COMMITTEE
CONFIDENTIAL ANNEX
(OPD (67) 25th Meeting, Item 1) (MONDAY. 3rd JULY 1967 at 3.30 p.ll.
Copy No........
34
1.
DEFENCE EXPENDITURE STUDIES
(Previous Reference: OPD (67) 24th Meeting)
The Committee resumed their consideration of memoranda by the Official Committee (OPD (67) 46) on the results of the defence expenditure studies and by the Defence Secretary (OPD (67) 47) on the military aircraft programme. They also had before them memoranda by the Defence Secretary (OPD (67) 49) on defence expenditure and the balance of payments and by the Minister of Overseas Development (OPD(67) 48) on aid and the balance of payments.
The following main points were made in further discussion of the
summary of the report by the Defence Review Working Party on the outcome of the defence expenditure studies on pages 31-36 of OPD (67) 46.
Paragraph (13)
The Committee were informed that in accordance with the conclusion of
their previous meeting, the proposal to reduce planned expenditure on defence research and development by £30 million (at 1964 prices) in 1970-71 had been
considered jointly by Ministers in the Treasury, Ministry of Defence and
Ministry of Technology. It had been confirmed that this was the maximum
saving that could be achieved without eliminating a major aircraft project. As the Harrier (P 1127) was to remain in the programme, the only remaining possibility of making further substantial savings in this area of expenditure
lay in reducing or eliminating the provision for developing the Anglo-French
variable geometry aircraft. In view of the recent French decision not to
continue with us in the project, the Committee were to discuss our policy on
this matter at their next meeting: the question of any further reduction
in expenditure on research and development would be determined accordingly.
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