31.   Solana recalled a NATO meeting in Berlin last month which developed the idea of a specific European defence identity within the Alliance.

32.   Such mergers would cut competition and rarely produce the savings claimed, according to the leaked MoD document on the future of the European defence industry.

33.   The figures were given at a meeting of foreign and defence ministers of the European defence organisation here, a diplomat said.

34.   The government, in launching this second attempt to privatise parts of the Thomson group, said that it would welcome the participation of European defence companies.

35.   The government said Wednesday it wanted the restructuring to encourage joint ventures with other European defence industries in order to counter American competition.

36.   The rapid reaction force at the centre of the row is a keystone in proposals for a common European defence policy.