The Defence White Paper (Cm 6041-I,II, ISBN 0101604122) published in December 2003 discussed the implications of international security issues (such as the threat of international terrorism and the proliferation of weapons of mass destruction) for strategic defence priorities, and detailed a revised set of 18 military tasks to underpin future policy planning for the UKs armed forces. Following on from this document, this White Paper sets out the Governments five-year plan for force structure and organisational changes to deliver the revised capability requirements, with an emphasis on using technology to secure maximum military effect from the forces available. This is in order to continue the process of modernisation to provide flexible and adaptable armed forces and to achieve efficiency savings of £2.8 billion by 2007-08, as identified in the Governments 2004 Spending Review. Measures include phased reductions of 1,500 in navy and 7,500 in air force manpower, with an expected army manpower level of 102,000 by 2008; with investment in several major technology systems to support the Network Enabled Capability (NEC) programme.

This strategy document sets out the Government's analysis of the UK's defence industrial capabilities requirement, and is divided into three parts: i) a strategic overview including information on the principles and processes that underpin procurement and industrial decisions, the need for transparency, the evolving defence industry environment, developments and innovation in defence research technology; ii) a review of different industrial sectors and cross-cutting industrial capabilities; and iii) how the strategy will be implemented and an assessment of implications for the Ministry of Defence and industry as a whole.

This new Defence White Paper explains how the Government plans to strengthen the foundations of Australia's defence. It sets out the Government's plans for Defence for the next few years, and how it will achieve those plans. Most importantly, it provides an indication of the level of resources that the Government is planning to invest in Defence over coming years and what the Government, on behalf of the Australian people, expects in return from Defence. Ultimately, armed forces exist to provide Governments with the option to use force. Maintaining a credible defence capability is a crucial contributor to our security, as it can serve to deter potential adversaries from using force against us or our allies, partners and neighbours.

The Foreign Affairs Committee concludes that the UK has an extremely close and valuable relationship with the US in specific areas of co-operation, for instance in the fields of intelligence and security; that the historic, trading and cultural links between the two countries are profound; and that the two countries share common values in their commitment to freedom, democracy and the rule of law. However, the use of the phrase 'the special relationship' in its historical sense, to describe the totality of the ever-evolving UK-US relationship, is potentially misleading, and its use should be avoided. The report examines key areas of co-operation: military and defence; intelligence; security; nuclear. Other sections cover: the FCO's US network (under unacceptable financial pressure); the British political approach to UK-US relations; the future of the relationship. The Committee believe the UK must continue to position itself closely alongside the US in the future, recognising the many mutual benefits which flow from close co-operation in particular areas. But the UK needs to be less deferential and more willing to say no to the US on those issues where the two countries' interests and values diverge.