TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 103

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development of technology and the growing sophistication of modern

weapon systems. The cost of the planned programme was estimated

to increase (at 1974 Survey Prices) from £4,000 million in 1975-76,

to £4,070 million in 1976-77, £4,150 million in 1977-78, £4,300

million in 1978-79, and an average of £4,450 million in each year

from 1979-80 to 1983-84.

6.

Throughout the post-war period Britain's economic performance

has lagged behind that of her major European Allies. For many years

our annual average growth rate has been little more than half that

achieved by France and the Federal Republic of Germany. For this

reason and because the economic situation is now more serious than

at anytime over the last 25 years, the Government decided that

resources must be released for investment and improving the balance

of payments. These should be the first calls on our resources in

solving our economic problems. The defence programme, with its

considerable demands on skilled manpower and industry, should play

its part in this process; and the burden of defence expenditure

should be brought more into line with that of our major European

Allies. Planned British defence expenditure in 1974 was estimated

at 5.8 per cent of GNP on NATO definition, while that of France

was 3.8 per cent, and of the Federal Republic of Germany 4.1 per

cent (or 4.9 per cent including Berlin Aid)*.

* Defence expenditure as a percentage of GNP is not the only way of comparing the burden of defence expenditure on the economy; but it is the best single readily-available measure of the defence effort in relation to a country's resources. The table opposite_7 (fig. 1) gives a comparison of the defence efforts of NATO countries in terms of percentage of GNP together with comparisons of total and per capita expenditures.

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