DEFENCE Secretary Malcolm Rifkind tookthe unusual step of over-ruling

his Accounting Officer to order British helicopters and save thousands

of jobs in a #1200m deal, it emerged last night.

A decision to buy a purely American fleet of Chinook helicopters would

have saved the taxpayer #300m.

However, the Government decided that the need to safeguard jobs and

retain a UK helicopter manufacturing industry was more important.

Consequently, the RAF is to get a mixed fleet of 22 Westland EH101s

and 14 Boeing Chinooks.

The long-awaited decision -- strongly opposed by senior RAF officers

and civil servants -- was warmly welcomed by MPs of all parties,

Westland and its workforce.

Mr Rifkind revealed he was forced to issue a directive to his

accounting officer, Dr Malcolm McIntosh, the Chief of Defence

Procurement, before the deal could proceed.

Dr McIntosh objected to the planned purchase on the grounds of value

for money.

The need to set up an EH101 support infrastructure from scratch meant

it was much more expensive than the Chinook, as the RAF already operates

a 32-strong fleet.

Boeing, which agreed to place work to the value of the contract with

British industry, had offered to double that deal to 200% the value of

the contract if just the Chinook was chosen.

Mr Rifkind, who stressed there were precedents for issuing directives

to accounting officers, said: ''He looks at the very narrow sense of

value for money ensuring the least expensive way of meeting a

requirement.

''But there is the need to ensure our armed forces have the helicopter

lift capability required; second, the necessity to retain a military

helicopter manufacturing capability in the UK and third, we look at the

wider employment and industrial benefits that flow.''

Dr McIntosh eventually concluded the overall benefits outweighed the

costs.

The Government has already invested some #1500m in the development of

the EH101 family, central to Westland's comprehensive design and

manufacturing capability.

Mr Rifkind said it had excellent export potential in both its military

and civil variants, from which the Government would derive substantial

benefit through the levy on sales.

''Our decision demonstrates the confidence that we have in this new

British aircraft,'' added Mr Rifkind.

First deliveries would be in 1999 and the announcement would increase

the military's medium support helicopter capacity by some 70%.

''It will help to secure the future of the UK helicopter design and

manufacturing capability and so strengthen the UK aerospace industry,

which provides important opportunities for UK suppliers as well as

technology and skills both within and outside the aerospace industry.''

He said a number of countries had expressed serious interest in the

EH101.

Shadow Defence Secretary David Clark said: ''We very much welcome the

announcement, for the Labour Party has always championed the Westland

EH101. We think the news today is important, not only for the armed

forces but also for the UK defence industry.''

It was ''absolutely vital'' that the UK maintained its

helicopter-building capability, added Dr Clark.

Liberal Democrat leader Paddy Ashdown, whose Yeovil constituency

includes the main Westland plant, declared: ''This order, though late

and less than originally promised, is nevertheless very welcome.

''It is a vote of confidence not only in the aircraft, but also in the

workforce and the management that have produced it.''

He said the decision opened up the possibility of wider use for the

EH101, which could become a Nato standard.

The order will help safeguard 6000 jobs at Westland and thousands more

at 200 sub-contractors, including Rolls-Royce, Lucas and GEC-Marconi.

It was received with a mixture of relief and rejoicing in Yeovil, home

base of the helicopter manufacturer.

News of the deal was delivered to the Westland factory by Roger

Freeman, the Defence Procurement Minister.

Addressing several hundred employees in the EH101 assembly hall, he

said: ''It is important we retain in the UK and here at Westland the

capability of designing and manufacturing helicopters, both civil and

military.''

Sir David Lees, chairman of Westland parent GKN, said he was delighted

by the announcement.

''This is very good news for Westland. We have always been convinced

that the EH101 was the right aircraft to meet the needs of the RAF.

''There is considerable interest in all variants of the EH101 in the

Middle and Far East, where a vigorous marketing programme is already

under way.

''This latest order, together with civil certification by the British,

Italian and US authorities last November, will further strengthen our

position.''

The Mayor of Yeovil, Tony Fife, was ''delighted''.

He said: ''It is splendid news but long overdue. Westland is

fundamental to the economic being not only of Yeovil, but of south

Somerset and north Dorset.''