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Australian Defence Procurement Bellany and James L Richardson Australian Defence Procurement f This is the first study ever undertaken of the policies of Australian governments towards the acquisition of weapons for the armed forces. The growth of the Australian defence budget in recent years and the burgeoning cost and complexity of modern armaments have made this subject of considerable interest, not only to those who plan and carry out the policies, but to all concerned as to how a large slice of national income is being spent. The study covers the period from the early fifties to the present day, but naturally lays emphasis on the much expanded defence purchases of recent years, including the F-111. Future prospects are examined and, in particular, there is a discussion of the chances for success of the new philosophy of greater Australian self-sufficiency in defence materiel. The tables of expenditure collate for the first time figures derived from a variety of published sources, some rather obscure, in an attempt to present a detailed continuous picture of the shape of Australian defence spending. Ian Bellany is the author of several articles on strategy, defence, and nuclear matters. Before joining the Department of International Rela­ tions at the Australian National University he was a member of the British Foreign Office concerned with problems of disarmament and arms control. He is soon to take up an appointment with the University of Lancaster. James Richardson is a graduate of Sydney and Oxford Universities. He has worked in the Center for International Affairs, Harvard, and in the British Foreign Office, and is at present Senior Lecturer in the Department of Government, University of Sydney. His main research interests are strategic and arms control studies and German politics. CANBERRA PAPERS ON STRATEGY AND DEFENCE Ian Bellany is the author of An Australian Nuclear Force (1969) and James L. Richardson is the author of Australia and the Non-proliferation Treaty (1968), Nos. 4 and 3 respectively in this series. James Richard­ son is also the author of Germany and the Atlantic Alliance (Cambridge, Mass., 1966). This paper is also to be published as a chapter in H. Gelber (ed.), Problems of Australian Defence and Foreign Policy, Oxford University Press, 1971. Australian Defence Procurement IAN BELLANY and JAMES L. RICHARDSON A publication of The Strategic and Defence Studies Centre AUSTRALIAN NATIONAL UNIVERSITY PRESS CANBERRA 1970 © Ian Bellany and James Longden Richardson 1970 This work is copyright. Apart from any fair dealing for the purpose of private study, research, or criticism, as permitted under the Copyright Act, no part may be reproduced by any process without the written permission of the Publisher. Library of Congress Catalog Card no. 78-135449 National Library of Australia Card no. and ISBN 0 7081 0084 8 Printed and manufactured in Australia by Gillingham Printers Pty Ltd, Adelaide AUSTRALIAN DEFENCE PROCUREMENT T he rapid increase in the research and development costs of advanced weapons systems is greatly reducing the ability of European states to develop their own systems, even where the skills and technology are present to a far greater extent than in Australia. The United States, with its much larger orders, can spread the research and development costs more widely. A European government must look to extensive export sales, a precarious basis for sustaining costly defence industries. The trend, then, unless European collaboration becomes far more effective, is towards a decline in the number of states capable of producing advanced weaponry. In the late 1960s the extent of Australia’s overseas defence purchases has come to be the major issue in the procurement debate, inevitably * The most substantial study to date in this area, Defence, Technology and the Western Alliance, undertaken by the Institute for Strategic Studies, is mainly concerned with Western Europe’s problems, in particular Europe’s chances of remaining a producer of sophisticated weaponry. The study brings out the global context in which Australia’s quite different problems arise. It was published by the Institute as six separate studies in 1967. For previous accounts of Australian defence procurement see T. B. Millar, Australia’s Defence (Melbourne, Mel­ bourne University Press, 1965), chapter 5, and H. G. Gelber, The Australian- American Alliance (Harmondsworth, Penguin, 1968), pp. 34-9. 1 2 dominated by the lengthening shadow of the F- 111. There is little awareness of the experience of weapons procurement in the postwar period as a whole, due to a lack of relevant studies and the considerable secretiveness of Australian governments on defence matters. Conse­ quently, the main features of Australian defence procurement since 1950 (data on costs, in particular) are incomplete and have had to be pieced together from a number of different sources (see Tables 1 and 2). SOME GENERAL CHARACTERISTICS D e s p it e a few notable achievements in research and development, none of the major items of current Australian defence equipment (warships, tanks, and combat aircraft) is wholly Australian in origin. The extent of the Australian contribution to their design and manufacture ranges from substantial conversions carried out on the U.S. F-86 Sabre aircraft, including a partly redesigned fuselage and the substitution of a British for the original American jet engine, to the ‘off-the-shelf purchases of British tanks (Centurions) and American guided missile-armed destroyers (‘Charles F. Adams’ class).1 Between these two extremes, licence-building of British, French, and Italian aircraft with small modifications to the original design, and the construction by Australian shipyards of ‘Daring’ class destroyers and ‘River’ class (formerly Type 12) destroyer escorts, with small but significant design and armament departures from the original British ‘Daring’ and ‘Type 12’ classes, have since the end of World War II given work to Australian aircraft factories and naval shipyards. A feature of the aircraft sector is the tendency for equipment to remain in front-line service with Australian forces for longer than in other advanced countries. Australia is one of the few countries that continues (1970) to have Canberra light bombers in its inventory of front-line combat aircraft:2 and the subsonic Sabre fighters were removed from front-line service only in 1969. Both of these aircraft first appeared in their original design before the Korean War (the Canberra flew for ne first time in 1949, the Sabre in 1948) but the Australian-built versions did not enter service until 1954 and 1956 respectively. The Canberra deliveries were spread over the period 1953-60 and the Sabre frcm 1 These have, however, been fitted with an Australian anti-submarine missile (see p. 7). 2 A squadron of Canberras is on active service in Vietnam (Commonwealth of Australia, Defence Report 1969, p. 38). 3 ON M » O >0 « 4 NO CO »—I O oo « - NO ON fill! 00 Tf -rf no O n ON NO j j s i i f ö <N NO © 0C 2 * 8 «! r- »o (O — OO (N s a ! U1 ° U —• 0 4 oi >o no ^r OO Tf o <o O T f —« *-* >o 00 NO ON roO «Or n 00 TT O IO *o C 1 o © a O ON C/3 —' *o on r» NO NOO l Cjl r- no »O NO TABLE 1 * * TABLE 1 Ovei (N —h m r- «o rf 8 o 'S«? * 3 S ä S & S 3 o '5 2-3 CJ —; t X> •°1?2n c o s > ." o o Uz a *-* O ° f l s as ■&1® S 9 a a JJ » “ ’S 1 .S ® „ 2 e J g S u ■§ < » 1 -3 I < E oo ^ |S s I lo r & S S ° s £ e § & ö 2 S' c -E 3 °to o-g. m ^ « ol < - | a «-> CO w b 8 "3 o U 0) S E & 3 « E.fc O « * E 3 to (fl w 3o CO 3 &8 S o Z< 3 > £ u < 3 w >OoE 4 TABLE 2 Defence (All costs, except where stated 1950-1 1951-2 1952-3 1953-4 1954-5 1955-6 1956-7 Army Weapons, ammunition, communica­ tions, transport and engineering, clothing* 10-8 35-8 52-4 30-4 36-8 32-8 28-2 Army procurement e xc lu d in g clothing, etc. Navy Aircraft, armament, ships, elec­ tronics, electrical stores 10-7 26-8 34-0 34-2 39-6 37-8 22-4 Air Force Airframe, engines, armament, air­ craft, communications 21-4 40-6 44-6 41-0 41-2 42-8 42-4 Defence R and D (i)t 1-8 2-2 2-4 3-4 3-6 4-4 4-2 Defence R and D (ii) plus Australian spending on Joint Long Range Weapons Project at Woomera 13-6 14-0 15-2 16-8 19-8 23-8 23-4 Total procurement including R and D (i) 44-7 105-4 133-4 109-0 121-2 117-8 97-2 Total defence 207-2 340-2 432-0 357-2§ 357-6§ 383-2 379-4 R and D (i) as percentage of defence (excludes Woomera) 0-9 0-6 0-6 1-0 1-0 1-1 1-1 Procurement as percentage of defence 21-6 31-0 30-9 30-5 33-9 30-7 25-6 GNP (market prices) Sbillion 7-2 7-7 8-4 9-0 9-7 10-6 11-5 Defence as percentage of GNP 2-9 4-4 5-1 4-0 3-7 3-6 3-3 * Clothing and medical supplies are not norm ally considerec1 procurement items and we have omitted them from the Navy and Air Force figures, but published data are insufficient to allow us to follow the same procedure with respect to the Army over the whole period covered by the table.
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