SECRET

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RECEIVED IN

REGISTRY No. 51

26 MAR 1974

hu Stught

2.

А

~KK1012

Mr Jackson's submission to Mr Thomson/Sir G Arthur/Private Secretary, dated 15 March 1974:

DEFENCE EXPENDITURE 7

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1. I am sure the Secretary of State should minute to the

Chancellor.

The points at issue are of major importance for

Foreign and Commonwealth affairs.

#1

However I do not think that

at this stage we need argue the details about Singapore or about

'groups" of commitments. To do so, may only lead to counter

arguments. There was, after all, a decision in 1968 and personally

I regard it as inevitable in the present financial climate that the Five Power defence arrangements should be run down very soon. I would prefer for the time being to stick to the main point, which

is that a defence review is in train, it cannot sensibly be treated piecemeal, and damage which is both unnecessary and grave would be caused to our overseas interests by premature announcements.

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