TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 160

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MINUTES OF EVIDENCE TAKEN BEFORE THE EXPENDITURE COMMITTEE

11 February, 1975.]

[Continued.

Q2. Effect of Conscription. What are the MOD Estimates of what French and German Defence expenditure would be as a percentage of GNP, if those countries did not have conscription? What would be the effect of funding pensions for regular Forces on the cost of maintaining a professional force in those countries?

A2. We have made no estimate of the cost (including provision for pensions) of all-regular forces for France and Germany. We could not usefully do so because of the many unknowns-e.g. the implications for training, pay, accommodation, and the general structure of the forces. A German estimate is that the cost in 1973 would have been an additional 1.5 per cent. of GNP.

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We have, however, attempted the more limited and separate exercise of calculating the resource costs of French and German conscripts. The true resource cost of these conscripts is the output they would have produced in the civil sector had they not been in the armed forces. The hidden cost of conscription is the excess of this cost over the pay and allowances the conscriptions actually receive. It is not possible to obtain exact figures for this hidden cost, but rough estimates suggest it might amount to about 0.3 per cent. of GNP in the case of Germany, and around 0.6 per cent. of GNP in the case of France. Taking the hidden cost into account, the percentage of GNP for defence for France in 1974 would be 4.4 per cent.; that for Germany also 4.4 per cent., or 5.2 per cent. including Berlin Aid.

Q3. Gan/Mauritius. What discussions has the MOD had with the FCO about the possibility that withdrawal of British forces from Gan and Mauritius will lead to increased expenditure in overseas aid, and with what results? What is the latest estimate of the annual cost to the U.K. of using the facilities in Diego Garcia?

A3. * *

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Q4. The NATO Frigate Project and Prospects for Standardisation.

A4. Successful collaboration on equipment projects depends on two things: a common timescale and harmonised operational requirements. Most N.A.T.O. navies, including the RN, are already committed to different ship designs to meet their requirements in the remainder of the 1970s and early 1980s. Our own requirements in this period will be met by the Type 21 frigates now building; and by the Type 22 (SEA WOLF) frigates in which we have made a heavy investment, and the first of which has already been ordered. Only the Dutch who we tried, unsuccessfully, to interest in the Type 22 frigate in 1969-70, and the Germans, have immediate unsatis- fied requirements and they are now studying a basically Dutch design for a high quality ship of some 3,500 tons to be introduced in the late 1970s.

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* Together with these nations we are actively studying the possi- bility of a harmonised ship requirement which we hope will lead to fruitful collaboration since we are well aware of the operational logistic and financial advan- tages to ourselves and to NATO which could flow from this.

Meanwhile, we are attempting to identify shorter term prospects for the standardi- sation of ship and weapons systems, so as to extend within NATO the benefits which the RN has already derived from this process applied to different classes of RN ships; and bearing in mind that these systems form a high proportion of the total cost of a ship and that hull standardisation is more likely to follow than to precede system standardisation. The main immediate prospects in this field appear to be in marine propulsion units and ship-borne helicopters.

Q5. Afloat Support.

A5. The civilian-manned Royal Fleet Auxiliary Service is one part of the Fleet's afloat support; another consists of RN manned ships such as Fleet Maintenance Ships: other ships and craft are manned by civilians from the Port Auxiliary Service and the Royal Maritime Auxiliary Service.

The RFA fleet of tankers and stores ships provides support generally for HM Ships wherever they are deployed. Following the proposed withdrawal from certain overseas commitments and the reduction in the number of HM Ships it has been