By Gwyn Harries-Jenkins
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Additional info for Armed Forces and the Welfare Societies: Challenges in the 1980s: Britain, the Netherlands, Germany, Sweden and the United States
Korea shows the impact of a major conflict, whilst Conservative administrations are associated with higher real defence-spending of over $100 m. 25 Also real defence-spending appears to have been rising at an annual rate of some £65 m. (1963 prices), which might be a partial reflection of advances in weapons technology. Since conflicting results were obtained for the substitutes variable, some further tests were undertaken. These tests were also used to identify any changes in society's preferences towards social welfare programmes, as well as the effects of defence cuts.
These changes had major implications for weapons and force structures. Land-based aircraft (RAF) were to replace carrier-borne aircraft (Fleet Air Arm); US aircraft, with varying amounts of British work-sharing, were to replace domestic projects and UK-based troops with air transport were to be substituted for overseas garrisons. Although the 1966 Review aimed at outlining defence policy for the 1970s, further Reviews followed in 1967 and 1968. Both were responses to the UK's continued balance of payments problems, with defence cuts being used to reduce overseas expenditure directly and also to contribute to the deflationary policies required to 'correct' the international payments deficit.
It affected the general level of taxation and absorbed an 'undue' proportion of qualified scientists and engineers, as well as large forces overseas with their direct balance of payments effects. There were also international equity considerations, with references to 16 Armed Forces and the Welfare Societies the UK's bearing a disproportionately large share of the total burden of Western defence. 11 Policy-makers assumed that resources were mobile. They predicted that the 1957 defence cuts would release skilled labour, especially scarce scientists and technicians, for employment in civil industry with associated favourable effects on capital investment and exportsY The 1957 Defence Review also reflected major changes in military technology and strategy.