LONDON, Feb 3 (Reuters) – Britain said on Wednesday its armed forces faced tough choices to adapt to an age of austerity but said greater defence cooperation, including with other European nations, could help make stretched budgets go further.

A government discussion paper on the future of the military acknowledged Britain could not afford to pursue all of its current defence activities while supporting operations in Afghanistan and elsewhere and investing in new systems.

“We will need to do things differently in the future and prioritise some activities over others. Hard choices and important decisions lie ahead,” Defence Secretary Bob Ainsworth wrote in the paper.

Britain, a staunch ally of the United States, has one of Europe’s strongest armed forces but it has been stretched by the wars in Iraq and Afghanistan, where it still has 9,500 troops.

LONDON, Feb 3 (Reuters) – Britain said on Wednesday its armed forces faced tough choices to adapt to an age of austerity but said greater defence cooperation, including with other European nations, could help make stretched budgets go further. A government discussion paper on the future of the military acknowledged Britain could not afford to pursue all of its current defence activities while supporting operations in Afghanistan and elsewhere and investing in new systems. "We will need to do things differently in the future and prioritise some activities over others. Hard choices and important decisions lie ahead," Defence Secretary Bob Ainsworth wrote in the paper. Britain, a staunch ally of the United States, has one of Europe’s strongest armed forces but it has been stretched by the wars in Iraq and Afghanistan, where it still has 9,500 troops. The government’s need to rein in a deficit forecast to reach 178 billion pounds ($285 billion) this year has raised questions over whether it can afford all the multi-billion-dollar equipment programmes it has signed up to, ranging from a replacement for its nuclear-armed submarine fleet to two new aircraft carriers to the Joint Strike Fighter. The Afghan and Iraq conflicts have highlighted failings in equipment such as a lack of helicopters and armoured vehicles. The paper, intended to form the basis for a review of defence strategy, made no recommendations on equipment. But Ainsworth said the Labour government stood by its decision to replace the nuclear submarines, expected to cost 20 billion pounds, and was committed to the new aircraft carriers. CONSERVATIVES MAY TAKE DECISIONS Critical decisions on the future of the British armed forces may fall to the opposition Conservatives, favourites to win an election expected in May. They too have promised to conduct a strategic defence review, if elected. Ainsworth told parliament "not a penny will be cut" from next year’s defence budget but that, in future, it faced "real financial pressure". One way to make best use of the available resources was greater international cooperation, he said. NATO remained the cornerstone of Britain’s security, the paper said, stressing the importance of its U.S. ties. "However, as Europeans, we must take greater responsibility for our security together. Stronger European defence cooperation offers many opportunities, not least in the wider role defence should play in resolving conflict and building peace," it said. France’s return to NATO’s integrated command structure last year offered an opportunity for greater cooperation, it said. Conservative defence spokesman Liam Fox agreed France and the United States were likely to be Britain’s main strategic partners, but he voiced doubts about other European allies. "For us there are two tests: Do they invest in defence? And do they fight? Too few European allies pass both these tests," he said. Bastian Giegerich, research fellow for European security at the International Institute for Strategic Studies thinktank, said defence cooperation had been forced on to the agenda by "the continuing high demand on forces, the consistent capability gap and the budget crunch." Current EU defence cooperation includes a naval force set up to combat piracy off Somalia. Britain has in the past been suspicious about duplicating NATO functions within the EU for fear it would undermine the transatlantic alliance.

LONDON, Feb 3 (Reuters) – China and India sharply raised defence spending in 2009 despite the economic crisis but most European NATO members face a squeeze on defence budgets as they rein in gaping deficits, a report said on Wednesday.

The impact of the global financial crisis on defence and security spending varied across regions and countries, the International Institute for Strategic Studies thinktank said in its annual report “The Military Balance”.

U.S. defence spending almost doubled under former President George W. Bush but President Barack Obama had signalled that the need to tackle a big budget deficit would require “a dramatic reprioritisation within defence spending”, it said.

Obama asked Congress this week to approve a record $708 billion in defense spending for fiscal 2011 — including a 3.4 percent increase in the Pentagon’s base budget — but said he would continue his drive to eliminate wasteful programmes.

LONDON, Feb 3 (Reuters) – Britain’s Ministry of Defence will say on Wednesday how it plans to adapt to an era of budget austerity while fighting a war in Afghanistan and bankrolling a range of multi-billion-dollar defence projects. Defence Secretary Bob Ainsworth will publish a discussion paper that, according to media reports, recognises cuts in the 36 billion pound ($57 billion) defence budget are inevitable and calls for greater integration with allies to fill defence gaps. Both the ruling Labour Party and the opposition Conservatives are committed to holding a thorough review of Britain’s defence strategy, the first in more than a decade, after an election expected in May. The party that wins the election will face intense pressure to rein in a public sector deficit forecast to reach 178 billion pounds this year. With politically popular health and education programmes likely to be spared much pain, defence is a prime candidate for cuts. At the same time, the government is sensitive to accusations it has failed to properly equip its 9,500 troops in Afghanistan. It has also signed up to a range of ambitious defence projects. HEAVY INVESTMENT The Typhoon fighter, the Joint Strike Fighter, two new aircraft carriers, destroyers and replacements for nuclear-armed submarines will all require heavy investment in the coming decade. Britain and European partners are locked in negotiations with European defence group EADS <EAD.PA> on how to cover the soaring costs of the Airbus A400M military transport plane. Britain is a key ally of the United States, where President Barack Obama this week asked Congress to approve a record $708 billion in defence spending for fiscal year 2011. Prime Minister Gordon Brown insisted at a parliamentary committee hearing on Tuesday that British defence spending was rising this financial year and next and that the government was committed to the new aircraft carriers. "Defence expenditure for future years is the subject of our spending review," he said. A report by the Royal United Services Institute, a defence thinktank, said last month that numbers of British military personnel could fall by 20 percent by 2016 due to a projected real-terms cut in defence spending of 10 to 15 percent. The budgetary squeeze has led to speculation that some of the big-ticket defence items will have to go. However, analysts say it is difficult to see where the government can make cuts in the equipment budget and that the stretching-out of some procurement programmes, such as the Joint Strike Fighter, have eased the problem. Cuts in programmes that throw people out of work at British shipyards or factories are politically unpalatable, particularly in an election year. "Up until now we haven’t had a single major programme cancelled and I’m not sure we will see a major programme cancelled," said Nick Cunningham, a defence analyst at Evolution Securities. (Additional reporting by Rhys Jones) (Editing by Noah Barkin)

LONDON (Reuters) – Turkey is ready to try again to broker a peace agreement between Israel and Syria if both countries agree to resume the stalled initiative, Turkish Foreign Minister Ahmet Davutoglu said on Friday.

Davutoglu said Israel’s 2008 invasion of Gaza scuttled a potential peace deal after Turkey mediated in indirect talks between Israel and Syria.

“Is it possible to restart it again? Yes, why not?” Davutoglu said in response to a question about the talks.

“If the two countries agree to restart it, we can do it. As Turkey, we are ready,” Davutoglu said at the International Institute of Strategic Studies thinktank in London.

LONDON (Reuters) – Turkey is ready to try again to broker a peace agreement between Israel and Syria if both countries agree to resume the stalled initiative, Turkish Foreign Minister Ahmet Davutoglu said on Friday.

Davutoglu said Israel’s 2008 invasion of Gaza scuttled a potential peace deal after Turkey mediated in indirect talks between Israel and Syria.

“Is it possible to restart it again? Yes, why not?” Davutoglu said in response to a question about the talks.

“If the two countries agree to restart it, we can do it. As Turkey, we are ready,” Davutoglu said at the International Institute of Strategic Studies thinktank in London.

LONDON, Jan 29 (Reuters) – Turkey is ready to try again to broker a peace agreement between Israel and Syria if both countries agree to resume the stalled initiative, Turkish Foreign Minister Ahmet Davutoglu said on Friday. Davutoglu said Israel’s 2008 invasion of Gaza scuttled a potential peace deal after Turkey mediated in indirect talks between Israel and Syria. "Is it possible to restart it again? Yes, why not?" Davutoglu said in response to a question about the talks. "If the two countries agree to restart it, we can do it. As Turkey, we are ready," Davutoglu said at the International Institute of Strategic Studies thinktank in London. "The Syrian side already declared they want to continue from where we left (off). The Israeli side, they have different views. Some coalition members are against, some are in favour. We will see," he said. "If we see a strong political will, both in Israel and Syria, we will continue to support (peace efforts). We will support every attempt, step in the direction of peace." INDIRECT TALKS Israel and Syria held four indirect rounds of peace talks with Turkish mediation in 2008, but they were suspended following the resignation of then Israeli Prime Minister Ehud Olmert in September that year. Syria said at the time of the Israeli offensive in Gaza at the end of 2008 that it ruled out a resumption of the indirect talks any time soon. But more recently, Syrian President Bashar al-Assad has expressed interest in renewing negotiations with Israel. Syria wants an Israeli commitment to withdraw from the whole of the Golan Heights, the Syrian plateau that Israel occupied in the 1967 Middle East War. Israel has said it was willing to resume the talks without preconditions. George Mitchell, U.S. President Barack Obama’s Middle East envoy, discussed reviving peace talks between Israel and Syria last week with Assad, who said Israel had to "declare frankly" it wants peace. Muslim but secular, Turkey has a history of military cooperation with Israel and has acted as an intermediary for the Jewish state with the Arab world. But relations have soured recently as Turkey repeatedly criticised Israel’s offensive in Palestinian-ruled Gaza. Syria has meanwhile improved its ties with Turkey, making Israeli officials wary of Turkey resuming a mediation role. Davutoglu repeated that the Israel-Syria peace talks had been making progress when Israel launched the Gaza offensive. Turkey was "concerned with the policies of Israel because of Gaza," he said, adding: "Criticising one policy of an Israeli government does not mean the end of Turkish-Israel relations." (Editing by Tim Castle)

LONDON (Reuters) – Donors will provide around $2.6 billion to finance development in Afghanistan through a World Bank-administered reconstruction fund over the next three financial years, the fund said on Friday.

Representatives of donor countries met in London on Friday, a day after a major international conference on Afghanistan, to discuss the Afghanistan Reconstruction Trust Fund (ARTF), which is backed by 31 countries.

“At the meeting, agreement was reached that allocations from the fund will now follow a clear Afghan government strategy, with an estimated financing envelope of around $2.6 billion for 2010-2013. This represents a 32 percent increase in available funds over the past three years,” a fund statement said.

The fund has mobilized over $3.6 billion since it was established in 2002, and has now become the main financing vehicle for Afghan development priorities, it said.

LONDON, Jan 29 (Reuters) – Donors will provide around $2.6 billion to finance development in Afghanistan through a World Bank-administered reconstruction fund over the next three financial years, the fund said on Friday.

Representatives of donor countries met in London on Friday, a day after a major international conference on Afghanistan, to discuss the Afghanistan Reconstruction Trust Fund (ARTF), which is backed by 31 countries.

“At the meeting, agreement was reached that allocations from the fund will now follow a clear Afghan government strategy, with an estimated financing envelope of around $2.6 billion for 2010-2013. This represents a 32 percent increase in available funds over the past three years,” a fund statement said.

The fund has mobilised over $3.6 billion since it was established in 2002, and has now become the main financing vehicle for Afghan development priorities, it said.

LONDON, Jan 29 (Reuters) – Donors will provide around $2.6 billion to finance development in Afghanistan through a World Bank-administered reconstruction fund over the next three financial years, the fund said on Friday. Representatives of donor countries met in London on Friday, a day after a major international conference on Afghanistan, to discuss the Afghanistan Reconstruction Trust Fund (ARTF), which is backed by 31 countries. "At the meeting, agreement was reached that allocations from the fund will now follow a clear Afghan government strategy, with an estimated financing envelope of around $2.6 billion for 2010-2013. This represents a 32 percent increase in available funds over the past three years," a fund statement said. The fund has mobilised over $3.6 billion since it was established in 2002, and has now become the main financing vehicle for Afghan development priorities, it said. "It is the Afghan government which has to respond to the people and it’s the Afghan government which has to be trusted with the resources," Afghan Finance Minister Omar Zakhilwal said in the statement. In laying out its new strategy for the fund, the Afghan government focused on priorities in the agriculture, infrastructure and irrigation sectors. "ARTF donors are financing around half of the total civilian wage bill, in particular supporting the work of teachers and doctors across the country," said Nick Krafft, World Bank country director for Afghanistan. "ARTF donors are also financing a quarter of the government’s core development spending, in critical areas like education, rural development and national power supply," he added. U.S. President Barack Obama is sending 30,000 more troops to Afghanistan to weaken a long-running insurgency and convince the Taliban to accept a peace deal. The Afghan government on Thursday invited the Taliban to a peace council as its Western allies worked out plans to try to end the war in the country. Zakhilwal told Reuters at the London conference on Thursday that Afghanistan may need up to $1 billion to help reintegrate Taliban fighters into society. That fund is separate from the reconstruction fund. (Reporting by Adrian Croft; Editing by Tim Castle)