shape of specific 'package deals' or through broad arrangements aiming for a balance of trade over a period between the countries concerned, can provide an efficient means of co-operation, and there is an understanding of the latter kind with France. Specific packages involving the reciprocal purchase of major equipments tend however to be difficult to identify and negotiate, though it is a common practice for countries making major purchases to seek a measure of offsetting work and Britain is no exception.
e. Collaboration at the basic research stage.
A considerable amount of collaboration in research already occurs. Useful co-ordination of national programmes, beyond substantial exchange of information, has been achieved under the aegis of the NATO Defence Research Group (DRG) and the Technical Co-operation Programme (Australia, Canada, New Zealand, UK and US) and on a bilateral or trilateral basis with various European members of the Alliance within a number of areas, including aeronautical research, materials research, operational research, human factors, infra-red, physics and electronics. A number of joint trials have taken place and the NATO DRG has recently taken steps to encourage co-operation in the construction and use of research facilities such as wind tunnels. Account has to be taken of national industrial interests and fundamental differences in national organisations for carrying out defence research. Nevertheless, the Government will continue to seek to expand collaboration in research wherever this is practicable and to the common advantage.
31. The Committee also urged that special efforts should be made to sell MRCA outside the three partner countries and that an urgent decision should be taken to redeploy or to sell any redundant Nimrod aircraft (Conclusion 9).
32. The three partner countries in the MRCA project have always recognised the importance that MRCA exports would have in strengthening the project and in providing an additional return on their investment in the aircraft's development. Sales promotion is now under way and several countries are already evaluating MRCA against their future requirements. Panavia, the tri-national European industrial Company formed in 1969 to design, develop and produce the MRCA is also responsible for the promotion of overseas sales. In this it works in close contact with a tri-national Export Sales Policy Group composed of representatives of the three participating Governments, and is afforded every possible assistance by the Ministry of Defence Sales organisation.
33. The common (IDS) version of the MRCA will be unique in its versatility and in its capacity for all-weather precision attack of targets on land and sea at long ranges. None of our competitors will have any comparable aircraft available in the same timescale. MRCA is a sophisticated aircraft and its greatest appeal will therefore be to the more advanced countries.
34. So far as the Nimrod is concerned, the possibility of sales of any surplus LRMP aircraft will largely depend on decisions yet to be taken on a successor Airborne Early Warning aircraft for the Shackleton and the choice of aircraft
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