TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 137

(DEFENCE AND EXTERNAL AFFAIRS SUB-COMMITTEE)

4 February, 1975.]

29

[Continued.

*

*

*

29. Savings in the helicopter force will involve the deletion of an earlier planned buy of medium lift helicopters which would have provided

and improved support capability for the Army; and also the disbandment by early 1976 of the Whirlwind and Wessex helicopter squadrons currently based in Cyprus and Singapore respectively (14 aircraft). These changes are expected to result in the saving of

Royal Air Force Regiment

30. Reductions in the task and thus in the size of the RAF Regiment are expected to result from the changes we are proposing in our non-NATO commitments. We are also examining the structure of the RAF Regiment to determine how best the residual commitments can be met. We do not at present envisage any change in the RAF Regiment's responsibilities for the operation of the Rapier low level air defence system.

RAF Stations

31. The implications in the support area of the major policy decisions announced on 3rd December are now being examined in detail. Our aim is to redeploy the facilities on small stations to larger bases and to ensure that, to the maximum extent possible, the reductions in RAF personnel and equipment are made in support rather than in the front line. As indicated in the Statement to Parliament, this should enable us to close some 12 RAF stations in the UK although the final list of closures is not yet complete. There may be an alternative defence use for at least some of the RAF stations given that, for example, an appreciable element of the RN and about one-third of the Army in the UK is still in old hutted accommoda- tion. Normal closure notification procedures will be followed in respect of the stations which we decide will be declared surplus.

V. IMPLICATIONS FOR R & D and Collaborative ProJECTS

Research and Development

32. Before the defence review, R and D expenditure was planned to rise from £440 million in 1974-75 to £510 million in 1978-79 and fall away to £450 million in 1983-84. We now propose an increase to only £470 million in 1978-79 and a decline thereafter to about £400 million in 1983-84. This will give a saving of 10 per cent. by 1983-84 and of 7 per cent. (about £360 million)1 over the whole period. At this level R and D will absorb much the same proportion of the defence budget as it does in the United States, very much less than in France and the USSR, but more than in the FRG where off-set purchases of military equipment are heavy.

33. R and D expenditure breaks down broadly as follows:

(a) 75 per cent. is devoted to the development-predominantly extramural-of specific equipments to meet approved Service requirements and to design support for equipments already in service;

(b) about 15 per cent. covers research (8 per cent. intramural, 7 per cent. extramural) into problems which will arise in developing future generations of equipment;

(c) of the remaining 10 per cent., capital investment (i.e. equipment and new works services) in R and D establishments accounts for about 6 per cent. and the final 4 per cent. is the programme's assessed share of headquarters expenses.

34. Clearly the bulk of the £360 million1 saving has to be found from the development programme (paragraph 33(a)), which accounts for three-quarters of the R and D expenditure, and we expect about £270-£280 million' to come from this source (see paragraphs 36-37 below). To find the balance of the R and D savings (£80 million-£90 million)1 we shall have to cut deeply into the research programme which will be reduced by more than £50 million1 leaving around £30 million to be found from the capital investment programme and administrative economies.

1 But see revised figures, pages 33-4.