ABSTRACT

Between February and April 1965, Harold Wilson’s Labour government took a series of fateful decisions which constituted a decisive turning point in the post-war history of the British aircraft industry. For predominantly financial reasons, three prominent military programmes were dramatically cancelled, and British officials decided instead to purchase American aircraft. This gave rise to considerable public shock in Britain, for it signalled an end to Britain’s independent aircraft development projects. However, as part of the negotiations over the purchase of the F-111, US and British officials agreed that the US Department of Defense would no longer apply the “Buy American” policy in the case of British military products. This agreement enabled Rolls-Royce to compete in the American market on the same terms as US manufacturers. Britain had abandoned the development of the most sophisticated fighter but, in return, the British aero-engine sector had gained entry into the lucrative US market.