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111. Detailed changes in the measures necessary to reach the First
level would not, however, significantly alter the broad nature of
The differences
the implications of reductions to the First level.
in money savings are in any case comparatively small in 1978/9;
and as has been noted in paragraph above, it should be possible
from the mid-1980's to maintain the forces associated with the
Critical level within a defence budget of about 4% of GNP i.e. at
the First level.
112. Notwithstanding this, whatever measures would have to be taken
to reach the First level of saving from the Critical level would
have effects on our front line, on NATO strategy and on the
confidence of our Allies out of proportion to the additional
savings achieved. The reason for this is that, in determining the
Critical level of military capability, the Ministry of Defence has
made every possible economy consistent with preserving at all costs
the teeth arm units necessary to meet our basic force commitments
to NATO. Everything else has been pared to the bone. Measures
which cut deeper into the defence programme - even only a little
deeper, would therefore necessarily fall heavily on the teeth units
which form the hard core of our basic NATO commitments, and have
disproportionate military effects.
113. In sum, the measures, set out in detail in Annex M, that would
have to be taken to achieve reductions to the First level are:-
a.
Royal Navy
In order to reduce from the Critical level to the
First level, the Poyal Navy would have to pay off the
remaining ships of the amphibious capability and reduce
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