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DEFENCE EXPENDITURE STUDIES
Report by Officials
INTRODUCTION
1. At their discussion on 9th December 1966 (OPD(66) 48th Meeting, Confidential Annex), the Defence and Oversea Policy Committee agreed that there should be studies of the possibility of further large reductions in the Defence Budget by 1970-71. These were to be based on the following principal hypotheses:
2.
(i) a cut of one-third in defence review force levels in Europe;
a cut of one-half in defence review force levels in the
Far East, including Hong Kong;
(ii)
(iii) a reduction in defence review force levels in the Persian Gulf; (iv) a re-appraisal of the value of the Central Treaty Organisation
(CENTO) in the longer-term and of our position in Cyprus
and the Persian Gulf;
(v) cuts in supporting forces and facilities in the United Kingdom.
Accordingly, twelve studies were commissioned; their terms of reference are at Annex A. Ministers also decided that additional studies
should be carried out:
(i) In relation to the Far East to indicate the implications of:
(a) total withdrawal from the Far East;
(b) withdrawal from Malaysia and Singapore while retaining
a minimum military capability in the Far East theatre; and
(ii) In relation to Europe, a study of the relationship of the
proposed reduction in the level of our forces in Europe to our European policy as a whole and, in particular, to our investigation of the possibility of joining the European Economic Community.
The terms of reference of these additional studies as agreed inter- departmentally by officials, are also at Annex A. The timetable for the completion of the studies was designed to permit Ministers to reach conclusions by the middle of 1967.
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