BRITISH DEFENCE EXPENDITURE

Press, Volume LXXXIX, Issue 26971, 21 February 1953, Page 7

BRITISH DEFENCE EXPENDITURE

Increase Provided For This Year LONDON, February 19. Britain will spend £1,636,760,000 on defence in 1953-54, an increase of £123,260,000 on last year, the Government announced today. The United States will pay £140,000,000 of this year’s total as dollar aid. the British Navy receiving £35,000,000. the Army £55,000,000, and the Air Force £50.000,000. The total strength of the British services is to fall by an estimated 13.400 to a total of 866,400 on April 4, 1954. Arms production is to cost about £650.000.000 out of the year's total instead of £850.000,000 which would have been spent if Britain had adhered to the original three-year arms programme launched in 1951. The Government’s statement said that the original three-year programme was still under searching review with the object of formulating a defence policy in the light of the probable international situation, the country’s economic prospects, and the advent of new weapons and techniques. The original objectives had not changed, but the means of achieving them and the rate of progress had been given close attention by the new Government since it took office. It was specially important to get the fullest possible value, for the mdney spent and the country had to balance the need for greater defence .against the risk of overstraining its economy to the point of collapse, thus giving the Communists a bloodless victory. . The original three-year nrogramme was to have cost £4,700.000.000 at 1950 prices. The first year’s expenditure was £130,000,000 less than envisaged, and though more was soent in the second year, it became clear that the whole plan could not be completed by March, 1954, without imposing too great a burden on the country’s economy.

The Government had, consequently, spread the programme by one year, but later for a longer period.

The statement said that the 1953-54 programme would, nevertheless, make a very substantial contribution toward modernising equipment and expanding the services. The level decided on was higher than ever before Known in peace time.