TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 128

CONFIDENTIAL

CONFIDENTIAL

RESEARCH, DEVELOPMENT AND PRODUCTION

61. Before the Defence Review the annual equipment budget was

planned to rise from about £1,300 million

in 1974-75 to about £2,000 million in the early 1980s. The latter

figure will now be limited to about £1,500 million and a total

saving of some £3,200 million on the planned equipment budget will

be achieved over the next ten years. (1974 Survey prices).

62. Expenditure on the Research and Development element of this,

together with manpower and other associated costs was planned

to rise from £440 million in 1974-75 to £510 million

in 1978-79 and to fall away to £450 million in 1983-84. It will

now be limited to £470 million in 1978-79 and £400 million in

1983-84

a saving of about 10 per cent. At a conservative estimate

the total saving on the R & D programme over the ten-year period

is now expected to be some £440 million. Most of these savings

will come from the development programme which accounts for some

threequarters of the R & D budget. But significant savings will

be made on research,

equipment, capital facilities and

manpower in R & D establishments.

Collaboration

63. The United Kingdom is already engaged on a number of collabora-

tive defence projects. The Defence Review decisions will involve

withdrawal from only one of these the RS 80 artillery project.

Severe restrictions on the resources available for defence will

make collaboration even more important in the future, not only for

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CONFIDENTIAL

CONFIDENTIAL