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commercial benefits of his discoveries, and the government organizations will assist to make the exploitation effective. An atmosphere of freedom in the way a researcher works is typical of the Scandinavian countries. The response of industry to new discoveries is gratifying, and the IVA serves as a valuable link with industry between pure and applied sciences.

D. Major research fields

1. Air, ground, and naval weapons (S)

Sweden has a strong military research, development, and production capability. Although its weapons research program is limited in scope, the work being accomplished is of high quality. The level of progress achieved is attributable largely to adroit management of the nation's limited resources, well-equipped research facilities, and extremely competent scientists and engineers. Sweden's policy of strict neutrality, combined with the nation's geostrategic location along the access routes to the Baltic, have impelled the government to adopt a strategy of total defense. Such a strategy is designed to provide adequate defense against atomic or conventional attack, invasion by sea or by land, or offensive actions by foreign aircraft or missile penetrators. The effectiveness of the Swedish defensive forces is based on the good cooperation existing among the military forces, the government, and industry on a sound, well-regulated military research, development, and procurement program. Every factor of the Swedish economy and industry is a part of a totally integrated defense plan. For the past 25 years, the country has followed a plan that essentially calls for the government, in making its yearly appropriation to industry, to approve also a long-term program specifying what weapons and related equipment will be purchased for the ensuing 4-year period. This system of long-term procurements planning has given Swedish defense industry a healthy stability, which in turn has been reflected in the high standard of equipment turned out by its manufacturers. However, limited manpower and financial resources have made it necessary to conduct weapons research along specific lines with definite goals. Toward this end the focus is upon the development and production of defensive-type weapons; there is no discernible activity associated with the development of strictly offensive weapons, such as intercontinental ballistic missiles, intermediate or medium-range ballistic missiles, and medium and heavy bomber aircraft.

Major Swedish weapons are of indigenous design, and concerted efforts are made to continue an independent capability in the development and production of advanced weaponry. The maintenance of this capability has depended heavily on the acquisition of licenses and technology from abroad. All Swedish weapons research and development programs are planned, implemented, and conducted in a meticulous manner, and stringent cost analysis procedures are followed throughout each step of a given weapon system's development. Operating with little reserve and coupled with the growing complexity and costs of contemporary weaponry, the Swedish defense industry is becoming more vulnerable to any weakening of the country's economy. Spending limitations imposed in the 1968-72 defense budget have constituted the single major factor to show progress in weapons research and development.

To offset the impact of military spending cutbacks, the Swedish aircraft industry, with government support, is vigorously attempting to improve its potential for civil aircraft development and production. In 1968 SAAB-Scania AB (SAAB), Linkoping, purchased Malmo Flygindustri in Malmo in order to acquire a light aircraft production capability. Of greater significance is the fact that, following several abortive attempts to initiate a Swedish commercial transport program, SAAB is joining with the British and West Germans in a collaborative effort to develop and market a quiet short-take-off-and-landing (STOL) transport. An agreement with the British Aircraft Corporation and Messerschmitt-Boelkow-Blohm GmbH has been negotiated, and development activity on the resulting aircraft has moved into the preliminary design phase. However, despite all efforts to improve the nation's potential in the civil aircraft field, the main commitment of the Swedish aeronautical industry in the foreseeable future will be to military programs, including both aircraft and tactical missiles. SAAB has developed several types of air-to-air and air-to-surface missiles which provide growth possibilities through the application of improved technology in the missile guidance, control, and propulsion fields.

The Swedish aeronautical industry, while relatively small in terms of total output, has one of the most advanced design, development, and productive capabilities in Europe. The main aeronautical capability is represented in two organizations, the Aerospace Group of SAAB-Scania AB and the Flygmotor Division of Volvo at Trollbattan, producer of jet engines. SAAB has a highly successful history of jet fighter development and production, and generally

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090022-2