§ 11.20 a.m.
§ Lord Mayhew asked Her Majesty's Government:
§ What reductions have been made in the procurement and production of equipment for the Soviet armed forces since 1988.
§ Lord Cavendish of FurnessMy Lords, the most recent Soviet statistics state that between 1988 and 1991 arms procurement spending fell by 29 per cent. in real terms. Over the same period the production of tanks, combat aircraft and artillery was approximately halved, while production of AFVs and APCs fell to around one-quarter of its earlier level. Although the basis of such statistics is obscure, we are in no doubt that both real levels of spending and production have fallen considerably.
§ Lord MayhewMy Lords, I thank the noble Lord for that informative reply. However, what further reductions are expected and, in particular, is there any official confirmation of the Soviet statement that they are planning to close or convert 400 arms factories?
Lout Cavendish of FurnessMy Lords, it is extremely difficult to give a graphic and accurate description of how the Soviet defence budget works. Perhaps I may answer the noble Lord's second question first. We welcome the Soviet proposals for the conversion of some 400 defence-related factories to civil it production. Diversion of resources from military to civil production would give a great boost to the Soviet economy and we shall look carefully at proposals for Western co-operation.
In January 1989 Mr. Gorbachev announced a 14.2 per cent. reduction in military spending and a 19.5 per cent. cut in military production. That was later revised in various ways, mainly upwards. There are explanations for the differences. The Russians use a much narrower definition of defence spending and prices which do not reflect real costs. However, if it will help the noble Lord, the key is that the reduction in tanks, combat aircraft, artillery, AFV and APC procurement claimed by the Soviet Union is broadly in line with our own assessment.