Commercial Failure and Cancellation
Initial hopes for Blue Water had been optimistic, seeing it as a NATO-wide replacement for the clearly obsolete Corporal. The anticipated customer was the West German Bundeswehr, but there were serious expectations that this would become standard equipment across NATO.
The US replacement for Corporal was the Sergeant. Solid-fuelled and generally comparable to Blue Water, although it was more complex and slower to operate and, like Corporal, still required a train of semi-trailer vehicles. It was however promised for delivery in 1961. In 1960 West Germany agreed to buy Sergeant rather than to wait for Blue Water. As this represented the other major customer for Blue Water, and also the likelihood that other potential customers such as Turkey and Italy would then follow this American path, the sales prospects for Blue Water became bleak. The programme was cancelled on 10 August 1962, as the UK government, whilst still wishing to purchase the missile, was no longer willing to fund the entire development costs itself. The total costs were estimated at around £32.1 million. This, and other similar cancellations in this period, were a source of considerable criticism for years to come.
Read more about this topic: Blue Water (missile)
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