Lol, I love how this thread won't die.
Personally, the idea I like best so far is to use the money to set up a machine shop and start cranking out something like an improved Sten as the standard weapon for everybody, maybe a sporter stock semi-auto version for the police and a full-auto pistol-grip model for the military. That keeps the money in the country, builds up local expertise, heck they could even export them and they money they save can go toward limited purchase of more specialized weapons for other uses.