By JOHN ARMSTRONG political editor
The cabinet has committed "substantial" cash to modernising the Army, but apparently scrapped Air Force plans to spend $445 million upgrading submarine detection equipment on the Orion surveillance aircraft.
The Prime Minister would not confirm yesterday's cabinet decisions, saying details would be announced in Parliament tomorrow after
defence partners such as Australia, Malaysia and Singapore had been told.
Helen Clark indicated that the United States would also be told because purchase contracts were to be signed with American companies.
It is understood the Army will get new field radios and an initial batch of the 100-plus light armoured vehicles it has requested. They are intended to replace the old M113 armoured personnel carriers now in service in East Timor and are expected to cost $5 million to $6 million each.
However, attention will focus on the canning of the Orion upgrading - a decision described by the Greens as a watershed in New Zealand's international relations akin to the anti-nuclear policy.
The upgrade - Project Sirius - would have replaced obsolete radar on the six aircraft with modern electronics and acoustics for spotting surface and underwater activity.
But ministers showed no enthusiasm for the project, questioning why so much money should be committed to anti-submarine capability when the South Pacific was such a "benign strategic environment."
It is understood the United States had been waiting for the project to be approved as an indication that the Labour-Alliance Coalition is serious about contributing to regional security.
Helen Clark said her advice was that the Australians and the Americans would be looking at New Zealand's overall level of defence spending, rather than specific items.
It had fallen to her Government to redress the rundown in spending through the 1990s. "I think people will see that the decisions that have been made are very substantial."
But Act's Richard Prebble said scrapping the Orion upgrade would be interpreted as a signal that New Zealand was not prepared to work alongside traditional allies.
His view was backed up by the Greens' defence spokesman, Keith Locke, who supports the cabinet's decision.
He said it would shift New Zealand away from Gulf War-type operations because the Orions would not have the sophisticated capability the Americans required from partners.
Tomorrow's announcement is also expected to include the closure of Auckland's Hobsonville base, home to the Air Force's squadron of Iroquois helicopters.
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