TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 133

CONFIDENTIAL

CONFIDENT I AL

INDUSTRIAL AND EMPLOYMENT IMPLICATIONS

71. At present we estimate that the numbers employed in the

defence industries on contracts placed by the Ministry of Defence will

be reduced by about 10,000, or about 4 per cent of the total, over

a five-year period. This is a broad estimate which takes account

of expected improvements in productivity as well as the future

content of the equipment programme. It will be some time before

the adjustments to our equipment proposals are fully reflected in

the workload of firms or factories. The reduction will fall

unevenly, affecting some firms and localities more severely than

others. Among the main firms are Westlands at Yeovil and the Small

Engine Division of Rolls Royce at Watford, both of which will be

affected by the cuts in requirements for helicopters.

A reduction

in the planned rate of delivery of the MRCA for the Royal Air Force

will affect the production of British Aircraft Corporation in

Lancashire, and of Rolls Royce at Bristol and Coventry which is

responsible for the RB109 engine. Reductions in the numbers of

in-service aircraft will affect Hawker Siddeley Aviation at

anchester and Bitteswell and Rolls Royce at Fast Kilbride and

Coventry. The conventional armaments industry is not likely to

suffer much change in employment. The shipbuilding industry

however, will be given less work. The exact implications for each

firm cannot be assessed until forward equipment programmes have

been revised in detail. However, the main firms likely to be

affected have been notified of the probable consequences so that

they can study the implications, and consult their employees.

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CONFIDENTIAL

CONFIDENTIAL