TNAG-0538-FCO40-633-Strength-of-garrison-in-Hong-Kong-1975 — Page 102

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achieve economies and to increase fighting efficiency by

enhancing the ability of Allied units to operate together.

Successful joint projects so far include the Anglo-French

Jaguar and the helicopters Lynx, Puma and Gazelle. We are making good progress with Italy and the Federal Republic of Germany in

the development of the Multi-Role Combat Aircraft (MRCA) and the medium artillery pieces, FH 70 and SP 70. Equipment collaboration

also facilitates joint logistic support and training arrangements,

like those now being discussed among the five European countries

who have agreed to purchase the Lance surface-to-surface missile

system from the United States.

14. In the course of 1974 the Government proposed that the

Eurogroup should both strengthen its own arrangements for equip-

ment collaboration and evolve a rational policy towards

the procurement of US defence equipment. As a result of this

initiative, Defence Ministers agreed at the Eurogroup meeting in June 1974 that, in the interests of the Alliance, there was a need to maintain a highly developed technological, scientific and

industrial base in Europe, while also seeking to achieve the

closest possible co-operation in arms production and procurement

between the countries of North America and Europe. At their

meeting in December 1974 the Defence Ministers agreed that compre-

hensive joint examination of national forward plans for procure-

ment was essential to ensure that worthwhile opportunities for

collaboration were taken up.

15.

The European NATO countries continue to make a substantial

contribution to the strength of the Alliance. The $1,000 million

II-7

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