(DEFENCE AND EXTERNAL AFFAIRS SUB-COMMITTEE)
21 January, 1975.]
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[Continued.
(d) a general reduction in the size of the Fleet (paragraph 5 below), including
disbandment of 1 Cdo "in due course ".
(e) "pruning overheads and structural adjustments" in the Army.
(f) closure of "some 12" RAF stations; and any reduced manning requirement
arising from decisions under paragraphs 5 and 6 below.
5. The equipment expenditure programme costs will be reduced because of:
(a) cancellations, the main deletions from the benchmark programme being purpose-built replacements for the Command carriers and assault ships; some Army equipment (including VIXEN and RS80); and some NIMROD refitting (? the AEW aircraft requirement? ?HAWK?).
(b) reductions in planned purchases in the period, which may be achieved by cutting the intended total "buy" and/or the intended rate of acquisition. These will apply to, amongst others,
(ii) the destroyer, frigate and MCMVS programme, the Patrol submarine
programme, and possibly, the cruiser programme.
(ii) the acquisition of light helicopters (e.g. fewer GAZELLES) and
reconnaissance vehicles.
(iii) (probably) the MRCA-though the planning requirement remains at 385
aircraft (including the interceptor version).
(c) the 10 per cent. cut in planned R & D outlays, on which no details have
been given, probably because they have not been worked out.
6. A reduced level of other expenditures is assumed, presumably on the basis of the generally reduced scale of the defence effort, especially the reduced numbers; and possibly too with a reduced intensity of activity in mind (e.g. to save fuel).
7. The forecast balance of payments implications of the revised programme have not been revealed. But the figures for stationing costs in 1974-75 (given in a Written Answer in July, 1974), were £434 million, of which Germany accounts for £294 million. After 1980 such outgoings might fall to, say, £350 million-at these 1974-75 Estimates prices and exchange rates. A reduction of c.£85 million in expenditures would imply an overall improvement to the balance of payments of, say £60-65 million.
14th January, 1975.
Examination of Witness.
Mr. DAVID GREENWOOD, Senior Lecturer in Political Economy (Higher Defence
Studies), Aberdeen University, called in and examined.
Chairman.
1. I ought to announce that for prac- tically the first time this Sub-Committee which normally meets in private, is meet- ing in public. We did announce to the Press that this would be so, but so far there is no public here. We are very fortunate in welcoming Mr. David
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Greenwood who is a Senior Lecturer in Political Economy (Higher Defence Studies) at Aberdeen University. He is also Visiting Fellow in 1974-75 at the International Institute for Strategic Studies. He has prepared a paper which we have as the basis of today's meeting. I might add that Mr. Greenwood served seven years in the R.A.F. I understand
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