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Mr. Nigel Evans (Ribble Valley): My right hon. Friend spoke about the new dangers that we face in Iraq and our continuing commitments to Bosnia and other parts of the world. Does he agree that it is only right that we ensure that our armed forces have the best equipment possible? News over the weekend has therefore been worrying. The chairman of the German defence committee says that the Germans will drag their feet over the Eurofighter 2000. My right hon. Friend knows my constituency's involvement in the production of the Eurofighter 2000. Will he use his influence with the Germans to ensure that they do not drag their feet over their commitment to the Eurofighter and restate his commitment to that valuable project?

Mr. Portillo: I do so happily. My hon. Friend is an assiduous champion of the project. We are determined to press on with it and we would like to see the Germans and our other partners participating in order to get it under way quickly. I shall make some considered comments on the subject later in my speech.

As the House knows, much larger numbers of British forces have been involved in Bosnia, first as part of UNPROFOR and now with the peace implementation force, IFOR. IFOR's success in separating and disarming the factions has enabled us to reduce British numbers to around 9,000 troops on the ground and 500 elsewhere. That includes some 1,200 reservists, who are making a crucial contribution. We remain the second largest IFOR contributor.

IFOR troops helped to ensure that the Bosnian elections in September took place peacefully. They verified the location of every polling station and ensured that they were in safe areas with free access. On election day, they were ready to guarantee freedom of movement and to provide security. Afterwards, they supplied logistic support to the counting of votes. A number of hon Members have told me of their experiences as election observers and the pride that they felt as they saw how British forces helped to conduct those peaceful elections.

The overall land operation has been admirably led by General Sir Michael Walker, who commands the headquarters of the Allied Command Europe Rapid Reaction Corps. That multinational, but largely British-manned, headquarters has been a huge success. It has been in Bosnia for almost a year and will shortly begin its handover. Our forces in HQ ARRC will be home for Christmas.

The United Kingdom also leads the multinational division in the south-west sector of Bosnia. It has successfully presided over the largest transfer of land under the Dayton agreement and has firmly established itself with the local communities on both sides. It has brokered agreements between the factions, while ensuring strict compliance with the military provisions of Dayton. Many colleagues in the House have admired the way in which British forces have conducted themselves.

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Since April, the division has completed more than 210 projects funded by the Overseas Development Administration at a cost of £5.7 million. Utilities, schools and hospitals have been rebuilt, roads have been repaired and new light industry has been set up, providing tangible benefits for the people of Bosnia from the peace agreement.

The international community will not abandon Bosnia in 1997. The primary focus must be the continuing civil operation: there is no purely military answer to this difficult political problem. The overarching political strategy of the international community needs to be put in place over the next two months and the London conference in early December may put the seal on it.

A continuing military presence may be part of the strategy. If so, we expect it to be NATO-led, like IFOR. NATO Defence Ministers, meeting in Bergen in September, set in train contingency planning for a range of possible mission objectives which would each imply different force levels.

We are anxious that a strategy, and clear objectives flowing from it, should determine whether to send a new force and, if so, of what size. We should avoid decisions on the nature of the force being taken before that strategy is in place. However, if there were to be such a force, our policy is that Britain should continue to play an important part.

Mr. James Couchman (Gillingham): My right hon. Friend rightly pays tribute to the work of our forces in Bosnia, particularly in the area of civil reconstruction. He will know that the Royal Engineers, substantial numbers of whom are based in my constituency, have played a part in that work. Will he bear in mind the fact that the active duty tours of specialist corps, such as the Royal Engineers and the Royal Signallers, are occurring ever faster? Does he understand the overstretch to which that leads within those specialist corps?

Mr. Portillo: I understand that. The balance of skills required in the armed forces has been changed by events such as Bosnia and the demand for engineers is much greater than we predicted. I do not know whether life will continue to be like that, but we shall certainly bear in mind the lessons that we have learnt from Bosnia. If it looks as though that operation, or others like it, will continue, we shall have to weigh the implications for the balance of our forces. I join my hon. Friend in the tribute that he paid to the Engineers.

Mr. Menzies Campbell (Fife, North-East): When the Secretary of State discussed the possibility of a follow-on force, he chose his language scrupulously. He was careful about precisely what he said, but can he confirm that, if the international community in general and NATO in particular conclude that there should be a follow-on military force, the United Kingdom will be part of that force?

Mr. Portillo: Yes. Although the hon. and learned Gentleman did not ask, I shall volunteer the information that the United States also needs to be part of that force.

The IFOR operation has reinforced respect for NATO and underlined the importance of American participation in European security. Perhaps most strikingly that has been true in command and control, in which an American contribution has been shown to be indispensable.

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Few people now believe that a European security and defence identity should be developed outside NATO, and Britain is working with our allies to increase the visibility of such an identity within the alliance. I believe that we have carried the point that there can be only as much identity as there is capability. European identity rests not so much on institutional changes as on European nations being able to perform military tasks.

NATO is embarked on creating combined joint task force headquarters. It will do the contingency planning and establish the infrastructure to allow the alliance to respond rapidly to a crisis by dispatching a multinational force.

As part of the debate on European identity, it has been agreed that were there to be an operation involving only European powers, the Western European Union could exercise political control even though the assets of NATO would clearly be involved. That agreement gives a new role to the WEU, which I welcome. It reinforces British reasons for wishing to ensure that the European Union does not absorb or subordinate the WEU. European Union political direction over NATO assets is inconceivable.

The alliance is making progress with reorganising its command structures. If that reorganisation can be satisfactorily resolved, it could pave the way for France to play a full part in the revised military structure. The British Government warmly welcome that prospect; it would be an ideal background for NATO's decision next year on which countries from eastern and central Europe will be the first to join NATO. That timetable will be stuck to.

NATO recognises the importance of ensuring that those applicant countries who will not join then do not feel isolated or ignored. Indeed, the same is true for those who are not applicants, such as Ukraine and Russia. NATO will wish to thicken its contacts with such countries, especially by developing the programme called "Partnership for Peace". Britain has put forward ideas to make its activities more effective.

The strategic thinking that has led NATO to the concept of a combined joint task force has led us to focus also on joint tri-service activity, rapid reaction and power projection. Those are the themes of the 1996 White Paper and I am grateful to the members of the Defence Select Committee for their positive comments.

The Joint Rapid Development Force became operational on 1 August and it will markedly improve our ability to undertake a wide range of short-notice missions. In July, the capability of the permanent joint headquarters at Northwood was evaluated in Exercise Purple Viva and it came through with flying colours. On 1 August, it was declared fully operational and began to take on live operations. It currently has responsibility for our contribution to IFOR; current operations in the middle east; disaster relief; and the day-to-day management of overseas commands.

Even with 17,000 troops committed to Northern Ireland and a large force in Bosnia, we were able to send 12,000 troops to take part in Exercise Purple Star in April and May. That exercise was an early test for the PJHQ and involved elements of the JRDF in the largest combined United Kingdom and United States deployment since the Gulf.

The formation of the JRDF required us to reassess our priorities and to continue the shift in our planning away from cold war configurations. But that also reinforced my

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belief that we should get on with placing orders for the new assault ships for the Royal Navy. Albion and Bulwark will replace Fearless and Intrepid.

The Government are committed to providing the armed forces with the manpower and equipment they need to undertake the tasks that our defence policy places on them. The Government have made it clear that the big upheavals in the armed forces are over. We shall continue to provide the stability that our armed forces need.

The outturn for defence spending in 1995-96 was £21,522 million, an underspend of £203 million. I had anticipated an underspend of £500 million, but that was reduced as suppliers' performance increasingly met our original expectations.

Last year the defence budget was set at £21.9 billion in 1997-98 and £22.6 billion in 1998-99. We were able to commit ourselves to continuing the investment in defence equipment that permits our armed forces to provide the operational capability that we require of them. We are committed to providing the resources necessary to sustain the front line. We have world-class armed forces. As long as there is a Conservative Government, they will be provided with world-class equipment.


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