President Nelson Mandela on Saturday said the modernisation of the SA Navy fleet was not a matter of debate despite the cut in the defence budget.

Speaking on board the SAS Protea after taking the salute of a variety of local and foreign warships in Table Bay to mark the culmination of the SA Navy's 75th birthday celebrations, Mandela said government recognised the navy's needs.

Shortly before the international naval review, Mandela inspected a navy guard of honour at Quay Five in Cape Town harbour while a 21-gun salute was fired from the naval battery on Signal Hill in pouring rain.

True to form, Mandela refused the offer of an umbrella during the inspection.

However, the rain stopped as the SAS Protea left the harbour and sailed out into the bay for the review.

Others on board included Defence Minster Joe Modise and his deputy, Ronnie Kasrils, navy chief Vice-Admiral Robert Simpson-Anderson, SANDF chief Maj-Gen Georg Meiring and senior naval officers from several foreign nations whose ships were participating in the review.

The vessel was accompanied by a large flotilla of yachts, powerboats, the NSRI, harbour patrol boats and a police waterwing craft.

Some distance offshore, the column of warships sailing past the Protea was led by the SA Navy's supply ship SAS Outeniqua.

Others hailed from Pakistan, the United States, the United Kingdom, Uruguay, Brazil, India, the Republic of China, Malaysia, the Russian Federation, Kenya, Argentina, France and Singapore.

A host of SA navy vessels followed, while the submarine SAS Emily Hobhouse, was also in evidence.

As each ship sailed past the SAS Protea, all hands were on deck to loudly cheer and congratulate the SA Navy on its 75th birthday.

Following the review, the Protea headed back to harbour to be met by thousands of spectators lining the Victoria and Alfred Waterfront, undeterred by occassional rain squalls.

In his speech, Mandela said: "Changing priorities have led to a reduction in the defence budget. But we do recognise our responsibility for ensuring that our country has an adequate and appropriate naval force."

He expected the defence review would see the "renaissance" of the SA Navy.

He also welcomed transformation in the navy, and said name changes for the strike craft were a positive sign.

Government valued the navy's contribution in trade and protecting maritime resources, he said, thanking navy officers for their dedication and professionalism.

"The sea is a vital national interest and that is why we maintain the navy," he said.

"Just as we believe that all people should be free, so too as a nation we believe in the freedom of the seas. That is a matter of national strategic interest."

With acknowledgements to Sapa.