IS D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S GOVERNMENT) COPY NO. CABINET DEFENCE; DRAFT WHITE PAPER M e m o r a n d u m by the Secreta£Y^^fJS tatefor^JJofence I a t t a c h f o r t h e c o n s i d e r a t i o n of m y c o l l e a g u e s a d r a f t White P a p e r , as r e v i s e d by the Defence and O v e r s e a Policy C o m m i t t e e , which it is p r o p o s e d to publish before the S u m m e r Recess. D. W. H . M i n i s t r y of D e f e n c e , S . W . 1. 4th J u l y . 1967 ^ 3 DEFENCE vJHITE PAPER I. INTROD u OilOF The Statement on the Defence Estimates, 1967 (Cmnd 3203) promised for later in the year another announcement about defence policy and the Government's plans for the size and shape of the forces for the next decade. This White Paper reports the progress which has been made. 2. At the end of the Defence Review we announced - in Part I of the Statement on the Defence Estimates, 1966 (Cmnd 2901) ­ the decisions which we had taken in order to carry us close to the financial objective for 1969/70. Since then, as part of the continuous process of reviewing defence policy and programmes, we have looked beyond 1969/70 in order to determine how much money and how many men we must plan to have in the 1970s in relation to the commitments and the tasks which-we foresee, and to the resources which the country can afford for defence. We have followed the broad approach to future defence policy described in the Defence Review. But we have also taken account of major developments of the last twelve months; on the economic side, a more pressing need to reduce OA^erseas expenditure, a slower rate of growth than expected in the British economy, and the consequent necessity to keep Government expenditure as low as possible; and, on the political side, the evolution of Government policy in relation to Europe, progress in revising NATO strategy, the Middle East crisis, and developments in South East Asia 15 following the end of "confrontation . 3. Defence policy can never he static.' The broad plans set out in this white Paper are designed both to provide firm decisions where these must be taken, and also to /allow a l l o w room f o r manoeuvre where c h a n g i n g c i r c u m s t a n c e s may­ r e q u i r e u s t o modify o u r p l a n s . Our aim h a s b e e n t o reconcil t h e n e e d f o r t h e S e r v i c e s t o have a p e r i o d of s t a b i l i t y t o e n a b l e them t o p l a n manpower and c a r e e r s and t o t h e i r equipment, adapt t r a i n i n g and s u p p o r t programmes t o i n t h e i r s h a p e and s i z e w i t h t h e i n e s c a p a b l e f a c t and changes that, a l t h o u g h we must e x e r c i s e what f o r e s i g h t we can i n our p l a n n i n g ; we c a n n o t by o u r s e l v e s c o n t r o l t h e c o u r s e of events in the world. /II. p ­ I T . b- 0 ETJROPS As was made c l e a r i n t h e S t a t e m e n t s on D e f e n c e Estimates 1966 (Grand 2 9 0 1 ) and 1967 (Gmnd 3 2 0 3 ) , t h e s e c u r i t y of Britain s t i l l Europe. d e p e n d s above a l l on t h e p r e v e n t i o n of w a r The Government, t h e r e f o r e , r e g a r d i t as in essential t o m a i n t a i n b o t h t h e m i l i t a r y e f f i c i e n c y and t h e political s o l i d a r i t y of t h e N o r t h A t l a n t i c T r e a t y O r g a n i s a t i o n . For t h i s p u r p o s e , we must c o n t i n u e t o make a s u b s t a n t i a l contri­ "bution t o NAT0's f o r c e s the i n o r d e r t o p l a y our p a r t i n d e f e n c e of E u r o p e and t o m a i n t a i n t h e n e c e s s a r y b a l a n c e the Western a l l i a n c e o within Our c o n t r i b u t i o n w i l l become more i m p o r t a n t a s we d e v e l o p c l o s e r p o l i t i c a l and economic ties b e t w e e n B r i t a i n and h e r E u r o p e a n n e i g h b o u r s * 5* NATO h a s now a d o p t e d a c o n t i n u o u s p r o c e d u r e for establishing force requirements five years ahead. This g i v e s us a f i r m e r b a s i s f o r p l a n n i n g our c o n t r i b u t i o n the a l l i a n c e . S h o r t of come new d e v e l o p m e n t , to such as p r o g r e s s t o w a r d s m u t u a l r e d u c t i o n s of f o r c e s b y b o t h NATO and t h e Warsaw P a c t c o u n t r i e s , we must new assume t h a t our c o n t r i b u t i o n t o t h e a l l i a n c e w i l l r e m a i n b r o a d l y on t h e same s c a l e a s a t p r e s e n t , some of our f o r c e s 6. a l t h o u g h we may b e a b l e t o redeploy in peacetime. S i n c e t h e p u b l i c a t i o n of t h e S t a t e m e n t on D e f e n c e E s t i m a t e s , 1967 (Cmnd 3 2 0 3 ) l a s t F e b r u a r y , NATO h a s t a k e n an i m p o r t a n t s t e p i n r e l a t i n g i t s and economic r e a l i t i e s strategy to the of t h e l a t e 1 9 6 0 s . political At t h e i r i n May 1 9 6 7 , t h e D e f e n c e M i n i s t e r s of t h e a l l i a n c e meeting agreed on p o l i t i c a l g u i d a n c e w h i c h s h o u l d b e g i v e n t o t h e m i l i t a r j ' " a u t h o r i t i e s for future force planningj i t was b a s e d on a r e a s s e s s m e n t of t h e t h r e a t c o n f r o n t i n g t h e a l l i a n c e and of - 3 ­ t h e r e s o u r c e s a v a i l a b l e t o meet i t . time t h a t , since a Soviet attack We h a v e a r g u e d f o r some i n Europe i s u n l i k e l y p r e s e n t c i r c u m s t a n c e s , and t h a t we s h o r l d p r o b a b l y in receive ample w a r n i n g of a n y c h a n g e i n t h o s e c i r c u m s t a n c e s , some of t h e f o r c e s r e q u i r e d i n Germany i n an e m e r g e n c y c o u l d b e held elsewhere in peacetime, provided t h a t they could be returned promptly if a c r i s i s la occurred. We h a v e p r o p o s e d t o our a l l i e s i n NATO and V/HU t h a t we s h o u l d r e d e p l o y t o t h e U n i t e d Kingdom e a r l y i n 1968 one b r i g a d e of BA.CTR and one s q u a d r o n of RAF, G e r m a n y . believe that, a g a i n s t the s t r a t e g i c background a b o v e , t h e s e a r e r e a s o n a b l e p r o p o s a l s and a r e that t h e y w i l l he a c c e p t e d b y o u r a l l i e s . We outlined confident They c o u l d lead t o f o r e i g n e x c h a n g e s a v i n g s of a b o u t o5?M i n a f u l l year. The r e d e p l o y m e n t i n i t s e l f would h a v e l i t t l e on t h e defence budget existence effect s i n c e t h e f o r c e s c o n c e r n e d would r e m a i n in i n t h e U n i t e d Kingdom and a v a i l a b l e t o NATO i n an emergency. 8. The l o n g - t e r m p r o b l e m of m e e t i n g t h e f o r e i g n c o s t of m a i n t a i n i n g c u r f o r c e s resolved.; exchange i n Germany h a s n o t y e t b e e n but t h i s i s r e c o g n i s e d by cur a l l i e s as a m a t t e r requiring further consideration. We h a v e , however, c o n c l u d e d a r r a n g e m e n t s w i t h t h e USA. and t h e F e d e r a l Government of Germany w h i c h w i l l e n a b l e t h e b u l k of f o r e i g n e x c h a n g e c o s t s i n Germany i n 1967/68 t o b e I t r e m a i n s our p o l i c y t o f i n d cover these c o s t s t h e r e a f t e r a l l i e s about this. LI­ our covered. s a t i s f a c t o r y arrangements to and we a r e i n t o u c h w i t h o u r III. 9. ROLE AND DEPLOYMENT OUTSIDE EUROPE The aim of o u r p o l i c y o u t s i d e E u r o p e i s , a s we s a i d t h e S t a t e m e n t on Defence E s t i m a t e s , in 1967, (Cmnd 3203) " t o foste d e v e l o p m e n t s which w i l l e n a b l e t h e l o c a l p e o p l e s t o l i v e at p e a c e w i t h o u t t h e p r e s e n c e of e x t e r n a l f o r c e s " , to a l l o w our f o r c e s t o w i t h d r a w from t h e i r E a s t and F a r E a s t . and t h u s s t a t i o n s i n t h e Middle We c a n n o t p r e d i c t e x a c t l y when t h e situatio w i l l make t h i s p o s s i b l e i n e v e r y a r e a where o u r f o r c e s a r e now s t a t i o n e d ^ and, i n p l a n n i n g t h e w i t h d r a w a l of our f o r c e s , we must t a k e a c c o u n t of t h e i m p a c t of o u r p l a n s on t h e p e o p l e s c o n c e r n e d , and o n t h e p o l i c i e s of o u r a l l i e s . We r e m a i n r e s p o n s i b l e f o r t h e s e c u r i t y of o u r d e p e n d e n c i e s ; we h a v e o b l i g a t i o n s t o o u r Commonwealth p a r t n e r s and a l l i e s ; and our p o l i t i c a l and economic i n t e r e s t i n t h e s t a b i l i t y of t h e world o u t s i d e Europe makes i t d e s i r a b l e t h a t we s h o u l d r e t a i n some capacity for c o n t r i b u t i n g t o t h e m a i n t e n a n c e of p e a c e w h e r e we c a n u s e f u l l y do s o w i t h i n t e r n a t i o n a l 10. agreement. B u t , t h e way i n which we s h o u l d d i s c h a r g e our r e s p o n s i b i l i t i e s a n d make o u r c o n t r i b u t i o n t o p e a c e - k e e p i n g continually changing. In the next decade ? new a i r c r a f t e n a b l e u s t o move f o r c e s a c r o s s t h e w o r l d f a s t e r a n d i n numbers t h a n was p o s s i b l e e v e n a few y e a r s a g o . s t r e n g t h of o u r f r i e n d s and a l l i e s i s g r o w i n g . The is will larger military The power and p o l i c y of our p o t e n t i a l a d v e r s a r i e s a r e a l s o l i a b l e t o change., And we must w a t c h t h e e f f e c t of t h e r i s i n g c o s t s of defence t h e economic s t a t e of t h e n a t i o n , since our on international i n f l u e n c e w i l l c o n t i n u e -to d e p e n d a s much on t h e s o u n d n e s s of o u r economy a s on o u r m i l i t a r y 11. strength. The Government e x p l a i n e d i n t h e S t a t e m e n t on t h e D e f e n c e Estimates, 1966 (Cmnd 2901) t h a t i t would n o t u n d e r t a k e major o p e r a t i o n s of war e x c e p t i n c o - o p e r a t i o n w i t h a l l i e s ; a n d would make t h e commitments t o o u r f r i e n d s d e p e n d e n t on t h e /in provision time i n t i m e of w h a t e v e r f a c i l i t i e s we n e e d e d o n t h e s p o t . planning since then has led to Firstly, a s our f r i e n d s t h e i r own f o r c e s , four important Our conclusions. a n d a l l i e s o u t s i d e E u r o p e b u i l d up t h e y w i l l v a l u e most from B r i t a i n a c o n t r i b u t i o n i n t h o s e s o p h i s t i c a t e d f o r c e s w h i c h some of may f i n d i t d i f f i c u l t to provide f o r themselves. t h e manpower and f i x e d f a c i l i t i e s them Secondly, i n o u r m i l i t a r y b a s e s may come t o c o s t more t h a n i s r e q u i r e d b y t h e t y p e of o p e r a t i o n s w h i c h t h e Government f o r e s e e s . military Thirdly, the visible p r e s e n c e o f e v e n s m a l l f o r c e s - n o t n e c e s s a r i l y d e p e n d e n t on l a r g e and e x p e n s i v e b a s e f a c i l i t i e s deterrent. Fourthly, in a c r i s i s , - may b e a v a l u a b l e i t w i l l b e more e c o n o m i c a l t o r e l y m a i n l y on s e n d i n g - f o r c e s from B r i t a i n , so l o n g a s some r e d u c t i o n i n s p e e d of r e a c t i o n and some i n i t i a l r e s t r i c t i o n the r o l e of t h e r e i n f o r c e m e n t s can be 12. The Government h a s t h e r e f o r e in accepted. revised i t s plans for d e p l o y i n g f o r c e s o u t s i d e E u r o p e so a s t o e n a b l e m a j o r reductions t o b e made i n t h e s i z e and c o s t of o u r f o r c e s a s a w h o l e . have h a d t o make a s s u m p t i o n s a b o u t t h e p a c e a t w h i c h t h e p l a n s c a n be c a r r i e d o u t ; b u t we may w i s h t o c a r r y o u t We revised the programme of r e d u c t i o n and r e d e p l o y m e n t e i t h e r more s l o w l y o r more q u i c k l y a c c o r d i n g t o p o l i t i c a l o r economic n e e d . 13. The Government h a s a l r e a d y a n n o u n c e d , and gone some way t o implement, p l a n s f o r the r e d u c t i o n s i n t h e M e d i t e r r a n e a n , S o u t h A t l a n t i c and t h e C a r i b b e a n . I t h a s a l s o announced p l a n t o w i t h d r a w from S o u t h A r a b i a and t h e Aden b a s e January 1968. For a s h o r t time a f t e r we s h a l l p r o v i d e its in however, B r i t i s h n a v a l and a i r f o r c e s i n t h e a r e a a s s i s t t h e new s t a t e t o d e t e r a n d , aggression. independence, the i f n e e d b e , t o meet external 7e a r e a l s o i n c r e a s i n g t h e f i n a n c i a l and o t h e r a s s i s t a n c e w h i c h we a r e g i v i n g t o w a r d s t h e b u i l d - u p and improvement of t h e S o u t h A r a b i a n forces. to 1h. I n t h e Fan E a s t t h e Government h a s d e c i d e d t o r e d u c e f o r c e s deployed i n Singapore and Malaysia by about h a l f 1970/71. At p r e s e n t , This i n c l u d e s Servicemen, c i v i l i a n s and c o m p a n i e s on s e a s e r v i c e i n t h e F a r E a s t . total by t h e t o t a l number of men and women w o r k i n g i n o r f o r t h e S e r v i c e s i n S i n g a p o r e a n d Malaysia- i s 80,000. the about ships' By A p r i l 1968, i s e s t i m a t e d t o be a b o u t 7 0 , 0 0 0 , r e f l e c t i n g t h o the second s t a g e of t h e r e d u c t i o n of 2 0 , 0 0 0 i n t h e F a r E a s t f o l l o w i n g end of " c o n f r o n t a t i o n " . expect a further the B e t w e e n A p r i l 1968 a n d 1970/71 we r e d u c t i o n i n S i n g a p o r e a n d M a l a y s i a of about 3 0 , 0 0 0 , l e a v i n g a t o t a l of a b o u t u 0 , 0 0 0 , of which a b o u t h a l f w i l l be c i v i l i a n s . The r e d u c t i o n s w i l l be so p h a s e d t h a t , the e a r l y 1970s, the B r i t i s h f o r c e s s t i l l s t a t i o n e d in Singapore and M a l a y s i a w i l l c o n s i s t l a r g e l y of n a v a l a m p h i b i o u s f o r c e ) and a i r f o r c e s Gurkha f o r c e s in Malaysia. our base f a c i l i t i e s . by ( i n c l u d i n g an - though t h e r e w i l l s t i l l be C o r r e s p o n d i n g c u t s w i l l be made i n These r e d u c t i o n s have now b e e n s e t h a n d o n t h e b a s i s of t h e c l o s e s t p o s s i b l e w o r k i n g in relationship w i t h t h e Governments of S i n g a p o r e and. M a l a y s i a , and on t h e u n d e r s t a n d i n g t h a t t h e y w i l l b e accompanied, b y s i g n i f i c a n t t o h e l p t h o s e Governments t o c o u n t e r a c t t h e e f f e c t s aid on t h e i r economi e s , 15. The Government i n t e n d s t o change i t s F a r E a s t p a r a l l e l with these reductions. commitments We s h a l l c o n t i n u e t o h o n o u r o u r o b l i g a t i o n s u n d e r SEATO, b u t t h e f o r c e s a s s i g n e d t o SEATO p l a n s w i l l b e p r o g r e s s i v e l y r e d u c e d . specific As we come t o rely more on r e i n f o r c e m e n t from B r i t a i n , we s h a l l make c l e a r t h a t we s h a l l n e e d a l o n g e r t i m e i n w h i c h t o d e p l o y any f o r c e s which we decide to c o n t r i b u t e . B r i t a i n w i l l honour her o b l i g a t i o n s t h e A n g l o / M a l a y s i a n Defence Agreements t h e r e w i l l be c o n s u l t a t i o n s on t h e way i n w h i c h we s h o u l d p l a n t o meet The Government w i l l a l s o c o n t i n u e making a them. significant / c o n t r i b u t ion - 7 ­ imder c o n t r i b u t i o n t o t h e Commonwealth S t r a t e g i c R e s e r v e , c o n t a i n s n a v a l , l a n d and a i r f o r c e s . which This i s a matter w i t h t h e f u t u r e o f t h e Commonwealth B r i g a d e , we a r e which, discussing w i t h o u r Commonwealth p a r t n e r s . i6. It i s n o t a t p r e s e n t p o s s i b l e t o p l a n i n t h e same the p e r i o d beyond 1 9 7 0 / 7 1 . years w i l l be s u b s t a n t i a l : detail The r e d u c t i o n s o v e r t h e n e x t few t h e Government i s d e t e r m i n e d that t h e y w i l l t a k e p l a c e i n an o r d e r l y m a n n e r , w h i c h w i l l e n a b l e Commonwealth p a r t n e r s t o a d j u s t S i n g a p o r e and M a l a y s i a t h e i r p l a n s , and w i l l our allow t o make t h e n e c e s s a r y economic t r a n s i t i o n as smoothly a s p o s s i b l e . We p l a n t o w i t h d r a w a l t o g e t h e r from o u r b a s e s i n S i n g a p o r e a n d M a l a y s i a i n t h e 1 9 7 0 s ; b u t t h e p r e c i s e t i m i n g of o u r e v e n t u a l w i t h d r a w a l d e p e n d on p r o g r e s s made i n a c h i e v i n g a new b a s i s f o r middle will stability i n S o u t h E a s t A s i a and i n r e s o l v i n g o t h e r p r o b l e m s i n t h e F a r East. 17o M e a n w h i l e , o u r p l a n s must be f i r m enough t o e n s u r e t h a t we h a v e t h e f o r c e s we n e e d t o match o u r r e m a i n i n g commitments t h e F a r E a s t and e l s e w h e r e , a n d e flexible enough t o u s t o respond, t o c h a n g e s i n l o c a l c i r c u m s t a n c e s . in enable However we may t h i n k t h a t e v e n t s w i l l t u r n o u t , we c a n n o t p l a n on t h e a s s u m p t i o n t h a t v/e s h a l l n e v e r have t o u s e o u r f o r c e s E u r o p e , where we s h a l l r e t a i n d e p e n d e n c i e s and o t h e r for the foreseeable future. outside obligations We a r e t h e r e f o r e p l a n n i n g maintain a military capability for use, if required, to i n the Far E a s t - e v e n when we no l o n g e r have f o r c e s p e r m a n e n t l y b a s e d the 18. in area. We do n o t n e e d t o s e t t l e the p r e c i s e c h a r a c t e r , d e p l o y m e n t of t h i s c a p a b i l i t y now. size and I t would be l a r g e l y composed, h o w e v e r , of t h e f o r c e s of a l l t h r e e S e r v i c e s w h i c h would b e s t a t i o n e d i n t h i s c o u n t r y f o r employment as a strategic r e s e r v e ; and we s h o u l d p r o b a b l y k e e p i n t h e F a r E a s t some o f t h e n a v a l and a m p h i b i o u s f o r c e s i n c l u d e d i n i t . The /which discussions which, a r e c o n t i n u i n g w i t h t h e A u s t r a l i a n Government a b o u t p o s s i b i l i t y of o u r h a v i n g f a c i l i t i e s i n A u s t r a l i a , and t h e e x a m i n a t i o n we a r e making of a new s t a g i n g a i r f i e l d B r i t i s h I n d i a n Ocean T e r r i t o r y , the in the are designed to lead to f l e x i b i l i t y r e q u i r e d by our long-term defence /IV. planning. THE FORCES the IV. : THE FORCES 19. The p r o g r e s s made i n t h e r e v i s i o n of NATO s t r a t e g y and f o r c e p l a n n i n g and t h e e v o l u t i o n of our f u t u r e policy o u t s i d e E u r o p e , h a v e made i t p o s s i b l e t o r e a c h b r o a d d e c i s i o n s on t h e l o n g - t e r m s h a p e and s i z e of our and f o r r e d u c i n g t h e f a c i l i t i e s which support forces, and a d m i n i s t r a t i v e services them. Tjie R o y a l Navy 20. The P o l a r i s f o r c e w i l l h e B r i t a i n ' s c o n t r i b u t i o n the strategic nuclear deterrent of t h e W e s t . to The Navy w i l l also continue to play a leading part in the of NATO " maritime shield forces/and to provide for future the foreseeable a v a l u a b l e p e a c e - k e e p i n g c a p a b i l i t y o u t s i d e Europe by t h e u n o b s t r u s i v e and f l e x i b l e e x e r c i s e of m a r i t i m e p o w e r . F o r t h e s e r o l e s our n a v a l f o r c e s r e q u i r e t h e a b i l i t y fight and s u r v i v e i n t h e e n v i r o n m e n t and n u c l e a r - p o w e r e d s u b m a r i n e ; of t h e g u i d e d t h e y must, 21. A i r power of tomorrow a s t h e Navy, l i k e t h e Army, w i l l r e l y on t h e a b i l i t y Royal Air Force l a n d - b a s e d a i r c r a f t missile therefore, i n c l u d e some s h i p s of t h e h i g h e s t c a p a b i l i t y . w i l l he as i n d i s p e n s a b l e t o t h e F l e e t to of today; the t o support t h e i r A p a r t from t h e P o l a r i s s u b m a r i n e s , t h e main forces. striking power of t h e Navy w i l l b e p r o v i d e d by t h e g r o w i n g f o r c e nuclear-powered submarines. For the surface f l e e t , LEANDER f r i g a t e s w i l l b e o r d e r e d ; being planned as a successor, range s u r f a c e - t o - a i r of more and a s m a l l f r i g a t e is w h i c h w i l l c a r r y a new c l o s e ­ g u i d e d m i s s i l e t o f o l l o w SEACAT, a m e d i u m - r a n g e g u n , and a new g e n e r a l p u r p o s e h e l i c o p t e r r e p l a c e t h e WASP. The Type 82 d e s t r o y e r now on o r d e r w i l l be completed; t h e d e s i g n w i l l n o t be c o n t i n u e d i n p r e s e n t form f o r f u r t h e r to its s h i p s of t h i s c l a s s , b u t w i l l b e /developed d e v e l o p e d i n two w a y s . c l a s s of c r u i s e r s , Estimates, I t w i l l "be e n l a r g e d i n t o t h e new forecast i n t h e s t a t e m e n t on t h e D e f e n c e 1966 (Cmnd. 2 9 0 1 ) , t o s u c c e e d t h e TIGER c l a s s c r u i s e r s ; converted and a l s o s c a l e d down f o r a new c l a s s of s m a l l e r d e s t r o y e r s . The c r u i s e r s , command and c o n t r o l f a c i l i t i e s h e armed, l i k e t h e Type 8 2 5 for which w i l l provide our n a v a l f o r c e s , will w i t h t h e SEA DART s u r f a c e - t o ­ a i r guided m i s s i l e system. In a d d i t i o n , they w i l l carry a f o r c e of t h e new SEA KING h e l i c o p t e r s armed w i t h s u b m a r i n e weapons and. e o n a r , anti­ The new d e s t r o y e r s w i l l a m o d i f i e d v e r s i o n of SEA. DART and a s m a l l e r carry helicopter; e v e r y s h i p from f r i g a t e u p w a r d s w i l l h a v e t h e most effective c a p a c i t y f o r r e c o n n a i s s a n c e and a t t a c k t h a t h e l i c o p t e r s can offer. The^ Army 22. The Army w i l l c o n t i n u e t o p r o v i d e t h e major c o n t r i b u t i o n t o NATO. British T h e r e d e p l o y m e n t of a b r i g a d e Germany would n o t a f f e c t t h e Army's f o r c e l e v e l s , from because t h e b r i g a d e would r e m a i n earmarked, f o r a s s i g n m e n t t o NATO, as s t a t e d i n p a r a g r a p h 7 above. The accommodation programme a l r e a d y i n hand t o p r o v i d e f o r w i t h d r a w a l s r e f e r r e d t o in t h e S t a t e m e n t on t h e D e f e n c e E s t i m a t e s 19^7 (Cmnd.. 3203) has b e e n e x t e n d e d t o c o v e r t h e a d d i t i o n a l n u m b e r s now r e t u r n i n g , i n c l u d i n g t h o s e from BAOR. 23. The s i z e of t h e Army o u t s i d e E u r o p e w i l l b e reduced. gradually A l l our t r o o p s w i l l l e a v e S o u t h A r a b i a i n d e p e n d e n c e comes i n 1 9 6 8 ; the increase In the after garrison s t a t i o n e d i n t h e P e r s i a n Gulf t o meet our r e m a i n i n g o b l i g a t i o n s w i l l be small. garrison this year. complete We a r e r e d u c i n g t h e Cyprus In Malta a phased withdrawal w i l l be by t h e end of 1 9 7 1 . In the Ear East, the main r e d u c t i o n s w i l l be made i n M a l a y s i a and S i n g a p o r e ; -H ... /garrison but the g a r r i s o n i n Hong Kong w i l l b e m a i n t a i n e d . When our f o r c e s h a v e b e e n w i t h d r a w n from t h e Aden b a s e i n J a n u a r y 1968 t h e S t r a t e g i c R e s e r v e w i l l b e s t r e n g t h e n e d by a Infantry 2U. further brigade. Our p l a n s f o r t h e r e o r g a n i s a t i o n of t h e I n f a n t r y were announced i n t h e House of Commons i n May. They w i l l b r i n g g r e a t e r economy and e f f i c i e n c y w i t h o u t destroying t h e i n d i v i d u a l i d e n t i t y of I n f a n t r y R e g i m e n t s . A new Army S t r a t e g i c Command w i l l b e formed l a t e r i n 1 9 6 8 . w i l l command a l l f i e l d f o r c e f o r m a t i o n s and u n i t s i n B r i t a i n a p a r t from f o r m a t i o n s e a r m a r k e d f o r This stationed assignment t o NATO and employed on p u b l i c d u t i e s and t r a i n i n g . general, balanced, t h o u g h i t w i l l be s m a l l e r , t h e Army w i l l In remain and w e l l - e q u i p p e d . The R o y a l A i r F o r c e 2 5 . T h e r e w i l l b e no change i n t h e r o l e of t h e R o y a l A i r F o r c e , w h i c h w i l l r e m a i n a s d e s c r i b e d i n t h e S t a t e m e n t s on t h e Defence E s t i m a t e s 1966 (Cmnd. 2901) and 1967 (Cmnd. 3203). 26. Major d e c i s i o n s a b o u t t h e f u t u r e e q u i p m e n t f o r t h e RAF have a l r e a d y b e e n a n n o u n c e d and a p j e r i o d of r e - e q u i p m e n t w i t h new a i r c r a f t large-scale has a l r e a d y begun. The o n l y c h a n g e s now p l a n n e d r e l a t e t o t h e s i z e of t h e required: in particular, forces b e c a u s e t h e f o r c e s w i l l be smaller, i t w i l l n o t now be n e c e s s a r y t o o r d e r any Phantoms. / T h i s p a s s a g e t o b e amended i n l i g h t further of r e v i e w of AFVG- p r o j e c t ^ " . Reductions^^ij^^uppprt 27. Base F a c i l i t i e s - T h i s r e d e p l o y m e n t of o u r f o r c e s e n a b l e u s t o r u n down s t o c k s and s u p p o r t i n g overseas, p a r t i c u l a r l y in the Far East. facilities will 285 CZCRET 28. We i n t e n d t o r e d u c e s u p p o r t i n g s e r v i c e s s t i l l i n t h r e e ways. In the f i r s t place, the smaller size the forces w i l l i n i t s e l f produce r e d u c t i o n s in support. by a d v a n c e d management and t h e w i d e r u s e of c o m p u t e r s . Finally, of their I n t h e s e c o n d p l a c e , we s h a l l make t h e s e r v i c e s more e f f i c i e n t further supporting techniques t h e p l a n s which a r e b e i n g worked o u t i n d e t a i l by e a c h S e r v i c e w i l l b e c o - o r d i n a t e d t o e l i m i n a t e d u p l i c a t i o n and t o b r i n g greater 29. about rationalisation. We p l a n t o make s u b s t a n t i a l c u t s i n b o t h and c i v i l i a n s u p p o r t p e r s o n n e l , uniformed t o c l o s e some s u p p l y d e p o t s , t o a m a l g a m a t e some t r a i n i n g e s t a b l i s h m e n t s , and t o r e d u c e c e r t a i n s t o c k s and r e s e r v e s . 30. 0 u a r : e p s MJ^isJ^rx^f^eX^A ^-J^^Q^r ^ r '."* , , , .' In. t h e s h o r t t h e p l a n n i n g and e x e c u t i o n of d e f e n c e p o l i c y d e c i s i o n s term, will c r e a t e more work i n t h e M i n i s t r y of D e f e n c e and we c a n n o t e x p e c t t o make s u b s t a n t i a l r e d u c t i o n s i n t h e i m m e d i a t e We s h a l l , however, wherever p o s s i b l e , s i z e of t h e f o r c e s , cut s t a f f s , functions, a s soon a s we can and as t h e r e s u l t of t h e r e d u c t i o n s i n t h e t h e c h a n g e s i n our o v e r s e a s t h e c u t s i n some c a p a b i l i t i e s , the curtailment commitments, of t h e s t r e a m l i n i n g and r a t i o n a l i s a t i o n support of our g e n e r a l o r g a n i s a t i o n and t h e c o n t i n u e d improvement management t e c h n i q u e s . 31. of We h o p e t h a t r e d u c t i o n s w i l l r e s u l t from t h e f u r t h e r future. e v o l u t i o n of d e f e n c e also organisation. We h a v e a l s o r e v i e w e d t h e d e f e n c e r e s e a r c h and d e v e l o p m e n t programme. A r e d u c t i o n of a b o u t £30m i s b e made i n I t , development p r o j e c t s as w e l l as affecting r e s e a r c h done i n Government e s t a b l i s h m e n t s and i n This w i l l free s c i e n t i f i c manpower and o t h e r resources for c i v i l work. - 13 to industry. valuable S e r v i c e Manpower 32. We i n t e n d t h a t by March 1971 t h e a c t i v e s t r e n g t h s t h e f o r c e s s h a l l f a l l by n e a r l y 3 7 , 0 0 0 , a s US " 1.U.1967 31.3.1971 Note; ' " - - - - - - follows:- UK Women and Boys ( s e e n o t e Adult., Males ii of - - Arm£ ME - '3)eTovTj" ­ SS Army; RAF­ 93,200 179,900 116,550 3,850 16,300 7,56o Sl+,800 166,100 102,000 3,600 15,100 8,500 F o r R o y a l Navy, b o y s a r e i n c l u d e d i n a d u l t male figures. We a r e p l a n n i n g t o make f u r t h e r r e d u c t i o n s i n t h e y e a r s beyond 1 9 7 1 , and v/e f o r e s e e a t o t a l r e d u c t i o n of a b o u t 7 5 , 0 0 0 on p r e s e n t s t r e n g t h s by t h e t i m e t h a t we h a v e finally w i t h d r a w n from M a l a y s i a and S i n g a p o r e i n t h e m i d - 1 9 7 0 s . 33* The r e d u c t i o n s w i l l be so f a r a s p o s s i b l e by n o r m a l w a s t a g e , b u t some o f f i c e r s and men w i l l become redundant. To m i t i g a t e t h i s r e d u n d a n c y we s h a l l s p r e a d i t a s a s we can o v e r t h e p e r i o d . The o f f i c e r s evenly and men c o n c e r n e d w i l l b e c o m p e n s a t e d by p a y m e n t s on t h e l i n e s s e t out i n an a n n e x t o t h i s White P a p e r . D e t a i l e d p l a n s w i l l t a k e some months t o be worked out by a l l t h r e e S e r v i c e s and w i l l b e p u b l i s h e d as soon a s p o s s i b l e . 3k. We s h a l l a l s o e x t e n d t h e f a c i l i t i e s training. for resettlement I n a d d i t i o n , v/e a r e making p l a n s , which w i l l s h o r t l y he p r o m u l g a t e d t o t h e S e r v i c e s , to give positive and p r a c t i c a l h e l p t o t h o s e l e a v i n g t h e S e r v i c e s so t h a t t h e y c a n f i n d s u i t a b l e employment i n c i v i l 35. life. The r e d u c t i o n and r e o r g a n i s a t i o n of b a s e a t home and a b r o a d and t h e f u r t h e r facilities s t r e a m l i n i n g of t h e M i n i s t r y of D e f e n c e h e a d q u a r t e r s w i l l r e d u c e t h e number of c i v i l i a n s r e q u i r e d t o s u p p o r t combat f o r c e s w i t h i n the U n i t e d Kingdom and i n t h e o v e r s e a s commands by a b o u t 1+5,000 UK c i v i l i a n s and 5 5 , 0 0 0 l o c a l e n t r a n t s . ' ^ " T h e r e w i l l he / c on su I t a t i on full consultation with the appropriate staff associations t r a d e unions about these r e d u c t i o n s as the p l a n s and develop, Manpower Sumrnarv, 360 To sum u p , we a r e p l a n n i n g t o a c h i e v e a r e d u c t i o n in t h e p r e s e n t s t r e n g t h s of UK S e r v i c e manpower w h i c h w i l l amount t o n e a r l y 3 7 , 0 0 0 by March 1 9 7 1 , and t o a t o t a l a b o u t 7 5 , 0 0 0 by t h e mid 1 9 7 0 s , We a r e a l s o p l a n n i n g 1 of re due­ t i o n s of c i v i l i a n manpower, b o t h UK and. l o c a l l y e n t e r e d , t h e o r d e r 03? 1 0 0 , 0 0 0 o v e r t h e same p e r i o d . w i l l be g r a d u a l l y r e f l e c t e d These of reductions i n cuts in the c a p a b i l i t y of a l l t h r e e S e r v i c e s - f e w e r s h i p s , u n i t s and s q u a d r o n s t h a n we d e p l o y t o d a y , and. c o r r e s p o n d i n g r e d u c t i o n s i n our e q u i p m e n t programmes. A . ^ ..COST - 15 ­ V. 37. COST As one of t h e m a i n f i n a n c i a l D e f e n c e Review, we s e t a t a r g e t t o be r e a c h e d i n 1969/70. o b j e c t i v e s of of £ 2 , 0 0 0 m . Since, the ( a t 196k p r i c e s ) as e x p l a i n e d t o t h e House of Commons i n 1 9 6 6 , t h e f i n a l d e c i s i o n s t o complete t h e D e f e n c e Review c o u l d n o t b e t a k e n b e f o r e t h e end of "confrontation", t h e e q u i p m e n t p r o g r a m m e s , manpower strengths and d e p l o y m e n t s c u r r e n t l y p l a n n e d would h a v e l e d t o a d e f e n c e b u d g e t i n t h e r e g i o n o f £ 2 , 1 0 0 m . a t I96U p r i c e s i n 1 9 7 0 / 7 1 . The p l a n s now worked o u t , on t h e b a s i s i n p a r t i c u l a r of new a p p r o a c h t o p o l i c y i n t h e F a r E a s t , w i l l e n a b l e defence budget for £200m. the 1 9 7 0 / 7 1 t o b e r e d u c e d by a f u r t h e r Not a l l t h e e c o n o m i e s now p l a n n e d w i l l b e "by 1 9 7 0 / 7 1 , the realised and t h e Government e x p e c t s t h e a n n u a l l e v e l of d e f e n c e e x p e n d i t u r e t o h a v e d r o p p e d by t h e m i d - 1 9 7 0 s by a f u r t h e r £100m. A s m a l l p a r t of t h e s e s a v i n g s w i l l b e s e t i n t h e s h o r t r u n by t h e c o s t of d e a l i n g w i t h r e d u c t i o n s and r e d e p l o y m e n t , and of p r o v i d i n g t e r m s f o r t h o s e who become r e d u n d a n t . already stated, significant off­ the compensation In a d d i t i o n , as t h e Government i s c o m m i t t e d t o p r o v i d e f i n a n c i a l a i d t o M a l a y s i a and S i n g a p o r e and South A r a b i a . 38. The d e c i s i o n s of t h e Government W i l l a l s o r e d u c e of o v e r s e a s d e f e n c e e x p e n d i t u r e . Annex H t o t h e levels Statement on t h e D e f e n c e E s t i m a t e s I 9 6 7 (Cmnd. 3203) showed t h a t , from Germany, where some s e p a r a t e means of b a l a n c i n g f o r e i g n e x c h a n g e o u t g o i n g s must b e f o u n d , local apart our defence e x p e n d i t u r e i s e x p e c t e d t o d r o p from £173m. t o o152m. by ; t h e end of t h e c u r r e n t f i n a n c i a l y e a r . The p l a n s outlined i n t h i s p a p e r w i l l e n a b l e a f u r t h e r £30m. t o be saved by 1970/71. T h i s i s a c u t of a b o u t 30'/ i n t h e p r e s e n t level, 1 6 /yij^J2SM2MIMIM' VI. 39. T h i s f/hite P a p e r c o m p l e t e s t h e p r o c e s s which has almost three y e a r s ' policy, it, CONCLUSION c o n t i n u o u s work r e v i s i n g B r i t a i n ' s f o r m u l a t i n g t h e r o l e of m i l i t a r y f o r c e t o The d e c i s i o n s h a v e b e e n r e a c h e d a f t e r c o n s u l t a t i o n s w i t h our a l l i e s , taken fully into account. extensive They s p r i n g from t h e b e s t ! i n t e r e s t s and r e s p o n s i - ­ and of t h e c h a n g i n g w o r l d i n w h i c h t h e y w i l l be p r o t e c t e d or U-0. this and t h e i r v i e w s h a v e b e e n a s s e s s m e n t we c a n make of 3 r i t a i n s bilities, overseas support and p l a n n i n g t h e f o r c e s r e q u i r e d t o c a r r y o u t role. required exercised. S u b s t a n t i a l s a v i n g s w i l l b e made i n t h e manpower and f i n a n c i a l resources required for defence. .Ve p l a n no m a j o r c h a n g e i n t h e s i z e of o u r c o n t r i b u t i o n t o NATO, a l t h o u g h a h i g h e r p r o p o r t i o n of o u r f o r c e s may i n be s t a t i o n e d in t h i s country. o b t a i n e d from a s i g n i f i c a n t future The s a v i n g s w i l l be r e d u c t i o n i n our chiefly military p r e s e n c e o u t s i d e E u r o p e , and i n some c h a n g e s i n t h e way i n w h i c h we s h a l l be a b l e t o d e p l o y o u r m i l i t a r y outside Europe. We b e l i e v e t h a t o u r a l l i e s capability appreciate that we a r e d o i n g e v e r y t h i n g p o s s i b l e t o e s t a b l i s h o u r p l a n s on a n e c o n o m i c b a s i s t h a t we c a n s u s t a i n . They a l s o t h e v a l u e of t h e c o n t i n u i n g though, r e d u c e d recognise contribution w h i c h -we s h a l l b e nrlang t o t h e m a i n t e n a n c e of p e a c e , hi. The S e r v i c e s w i l l s t i l l h a v e a n i n d i s p e n s a b l e t o p l a y i n s u p p o r t of B r i t a i n ' s f o r e i g n p o l i c y . role The Government i s s u r e t h a t t h e Royal Navy, Army and R o y a l A i r Force, t h o u g h s m a l l e r i n s i z e , w i l l be c a p a b l e of t h e demands t h a t may be made on t h e m . Whatever meeting those demands may p r o v e t o b e , we c a n be c e r t a i n t h a t t h e y will c o n t i n u e t o be e x a c t i n g i n o p e r a t i o n a l and t e c h n i c a l s k i l l and t h a t they w i l l often a r i s e a t s h o r t n o t i c e , in the as t h e y h a v e past. A2. ­ ... 42. More o f our f o r c e s w i l l be b a s e d i n B r i t a i n ; s e r v i c e m e n s h o u l d s e e more of t h e i r f a m i l i e s . . and The o p e r a t i o n a l t a s k s t o be done o u t s i d e B r i t a i n w i l l a s h i g h a s t a n d a r d of o p e r a t i o n a l r o a d i n e s s and a s t h o s e of t o d a y . The S e r v i c e s which we s h a l l require training maintain w i l l be of a q u a l i t y of w h i c h t h e men and women who s e r v e i n them, a n d t h e c o u n t r y a s a w h o l e , c a n be p r o u d . - 18 ANNEX TO JULY MITE,.PAPER Redundancy P a y m e n t s 1o In accordance with e s t a b l i s h e d p r a c t i c e , officers and men whose c a r e e r s a r e p r e m a t u r e l y t e r m i n a t e d ho e n t i t l e d t o c o m p e n s a t i o n ; of t h e c u r t a i l m e n t of their expected Service t h e i r l o s s of p r o s p e c t s , account careers, t h e h i g h e r r a t e s of p e n s i o n a c c r u i n g from l o n g e r s e r v i c e , difficulties t h i s w i l l take will and a l s o t h e additional which t h e y may e x p e r i e n c e i n s t a r t i n g ­ new c a r e e r s i n c i v i l i a n life. Officers 2. For o f f i c e r s s e r v i n g on p e r m a n e n t c o m m i s s i o n s who are permaturely r e t i r e d , compensation w i l l he in form of a lump-sura payment w h i c h , t o meet a l l the the f a c t o r s mentioned in the p r e c e d i n g paragraph, will r e a c h a t t h e maximum t h e e q u i v a l e n t o f 21 m o n t h s ' b a s i c pay ( i c e x c l u d i n g a d d i t i o n a l p a y , m a r r i a g e ration 3. and allowance). Payments w i l l r e a c h t h i s l e v e l when t h e h a s g i v e n 13 y e a r s ' officer q u a l i f y i n g s e r v i c e and w i l l d e c r e a s e when t h e o f f i c e r h a s l e s s t h a n 5 y e a r s ' s e r v i c e to complete b e f o r e h i s expected retirement date. U, Payments w i l l b e b a s e d on t h e p a y i n i s s u e t h e r a n k h e l d on r e l i n q u i s h m e n t of l a s t w h e t h e r t h i s b e a c t i n g , t e m p o r a r y or for appointment, substantive. - 5. 2 ­ Normal r e t i r e m e n t b e n e f i t s w i l l n o t b e affected, e x c e p t t h a t t h e n o r m a l r e q u i r e m e n t of 2 y e a r s ' in the s u b s t a n t i v e rank w i l l be waived. officers service Those who would n o t n o r m a l l y q u a l i f y f o r retired pay on c o m p u l s o r y r e t i r e m e n t , b e c a u s e t h e y h a v e less t h a n 16 y e a r s ' r e e k o n a b l e s e r v i c e , w i l l b e granted r e t i r e d pay as i f provided t h e y had b e e n i n v a l i d e d , t h a t t h e y h a v e g i v e n a t l e a s t 10 y e a r s ' qualifying service. 6. S p e c i a l arrangements w i l l apply to categories of o f f i c e r s certain s e r v i n g on n o n - p e r m a n e n t commissions. Ratings 7. 8 Soldi^s^jincl^Alrja^n The f u l l s c a l e of c o m p e n s a t i o n f o r ratings, s o l d i e r s and a i r m e n s e r v i n g on p e n s i o n a b l e mcnts h a s b e e n b a s e d on t h e same g e n e r a l t i o n s as f o r o f f i c e r s ; but, owing to t h e engage­ considera­ difference i n t h e i r e n g a g e m e n t and p e n s i o n t e r m s , t h e scheme f o r o t h e r r a n k s h a s b e e n d e v i s e d on d i f f e r e n t i n o r d e r t o m i t i g a t e t h e l o s s of e n t i t l e m e n t p e n s i o n which t h e y would o t h e r w i s e s u f f e r lines to on p r e m a t u r e retirement. 8. The main f e a t u r e s a. of t h e scheme a r c The minimum p e r i o d of q u a l i f y i n g that" service f o r p e n s i o n h a s b e e n r e d u c e d from 22 y e a r s 10 y e a r s ( a f t e r t h e age of to 18). /b. b. For t h e p u r p o s e of c a l c u l a t i n g pension and t e r m i n a l g r a n t f o r t h o s e who have served a t l e a s t 10 y e a r s , a n a d d i t i o n a l c r e d i t up t o U. y e a r s ' s e r v i c e w i l l be g i v e n , t h a t t h i s a d d i t i o n does not extend 9. engagement. In addition, provided their r e c k o n a b l e s e r v i c e b e y o n d t h e end of current of the o t h e r r a n k s w i t h 10 y e a r s ' qualifying s e r v i c e w i l l r e c e i v e lump-sum p a y m e n t s r i s i n g t o a maximum of 12 m o n t h s ' b a s i c pay ( i e e x c l u d i n g additional p a y , m a r r i a g e and r a t i o n a l l o w a n c e ) a f t e r 16 y e a r s ' qualifying s e r v i c e , but decreasing for those with than 5 years t o c o m p l e t e on c u r r e n t less engagement. Those men w i t h 3 or more, b u t l e s s t h a n 10 y e a r s ' c o m p l e t e d s e r v i c e from age 18,who w i l l n o t be f o r p e n s i o n and t e r m i n a l g r a n t , eligible will receive a gratuity on i n v a l i d i n g t e r m s , p l u s a lump sum r a n g i n g from 3 t o l h months' b a s i c 10. pay. Special arrangements will a p p l y , t o certain c a t e g o r i e s of o t h e r r a n k s s e r v i n g on n o n - p e n s i o n a b l e engagements.