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<p>Preserving industrial capability can be used as a measure to protect a nation's
security interests under the Article 346 exemption in certain circumstances. For example,
there is a requirement to protect our freedom of action to design, integrate and build
Royal Navy warships, as this is critical to national security. All procurement decisions
are still subject to value for money considerations.</p><p>In the case of the Fleet
Solid Support ships, the Article 346 exemption does not apply, because, as outlined
in the 29 May 2018 letter to the Chair of the House of Commons Defence Committee,
the ships are not deemed to be warships and there is no national security interest
in limiting the competition to UK companies.</p>
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