by Alan Watkins

The Prime Minister congratulated and praised the people of
Chatham for the way they served this nation over many years at the
first annual Armed Forces Day in the historic dockyard on
Saturday.

"For centuries, in peace and war, Chatham has served our
country.

"We owe an enormous debt to the community of Chatham, which
has done more to the naval services of our country than anywhere
else," he said, speaking 25 years after Margaret Thatcher's
goverment closed the yards.

Hear from our reporter
Alan Watkins and Falklands War veteran Simon Weston while watching
the celebrations

Tens of thousands turned the town into a colourful cavalcade
to honour all the services.

The town had become the centre of the nation's tributes, led
by the Duke of Gloucester and a host of ministers.

There was a special cheer - very loud and pointed - as a
contingent of Gurkhas marched past the Prime Minister at the
saluting base - and looked him stright in the eyes.

Later today Chatham will formally hand over the responsibility
for staging the 2nd armed forces day in 12 months time to Cardiff,
which had been pipped at the post for staging today's events.

During the afternoon the Battle of Britain memorial flight,
the Red Arrows, and a host of marines, soldiers, parachutists and
naval personnel will show off their skills to the crowds.

• For more on Armed Forces Day see our special report
• Related article: Combined forces put on a display to remember