DJM45170 40mm 5/73 G.W.B.LAd. Gp.863
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5. We have questioned the Ministry of Defence
experts on whether, with this possibility in
mind, it would be appropriate or desirable
to go ahead with a review of the defence
contribution under the cost escalation clause.
Their answer has been three-fold. First they
say that planning of the capital works must
continue if there is not to be a serious hiatus
in the programme; that decisions have to be
taken by June for the reasons I have explained;
and the results of the Defence Review are unlikely
to be known until several months later. Second,
they say that if the outcome of the Defence Review
works was to affect any item in the programme signifi-
A
cantly, the letting of contracts for capital
works could be stopped before any new money
had actually been spent (i.e. the middle of next
year). Thirdly they estimate that whatever
the results of the Defence Review, it would be
unlikely, if only for practical reasons,
to
result in the removal of significant numbers
on the ground until 1976. They argue therefore
that it would be very late in the current
agreement before the second trigger point could
any was
be reached.
6. In view of this there would seem to be no
technical reason against a review now, under
the cost escalation clause, and some harm in
delay. Aut, given the general sensitivity of
the defence contribution question, in Hom, ens,
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