This report deals with the performance of the Ministry of Defence against the objectives and priorities set for the financial year 1999/2000. It is as far as possible a comprehensive account of defence-related performance and activity. A summary of performance against the Public Service Agreement precedes chapters on: military capability; security policy; people; logistics and procurement; resources and management; standards. There are a number of appendices which include the Defence Mission, the structure of the Ministry of Defence and the responsibilities of Defence Ministers.