J F MAYNE ESQ
DS 22
APR 1974
CONF-DENTTAL UKKO 19
No Cormack
Please draft to 17.07. A. Boun
faval (and 2 in consultation
MINISTRY OF DEFENCE with WEDxWod.
MAIN BUILDING
WHITEHALL
LONDON SW 1
Dear John.
DSWP:
ANGLO-GERMAN OFFSET
Melu
c.c. Mr Weggen
ow Conde
Mo Jame
Mr Technell
Mr Sleeart
hu. Stante
J
10
Постовотрова De speak tee
Treasury Chambers
Parliament Street is not much!
London SW1P 3AG Mested
Telephone 01-930 1234 ext
5 April 1974
Mies
reflected
162
in R
Youde's draft
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Bay PMI
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Prompted by a recent article in the Daily Express about the cost of keeping our troops in Germany, the Chancellor called for a short factual report on present Anglo-German offset arrangements. When this was supplied, he indicated that he thought the matter should certainly be considered in the Defence Review Working Party.
9/
I am therefore writing to you now to register the point and to suggest that it should be discussed further at a future DSWP meeting. The question of Anglo-German offset is not directly related to the first stage of the work now being undertaken by the MOD on the military consequences of reduced levels of defence expenditure, and by the FCO on the political implications of abandoning non-NATO commitments. It will however be relevant to consideration of possible options to be presented in the DSWP report, one of which will need to cover the possibility of a substantially larger payment from the Germans in respect of such forces as we are able to retain there after the Defence Review.
1
Somewhat similar considerations will also apply to Hong Kong where one of the options could be to retain some forces there against a substantially increased contribution from the Hong Kong Government. No doubt the FCO will be looking at this possibility when considering the political implications of withdrawal from Hong Kong as part of their first stage look at non-NATO commitments.
Boon.
We suggest that these matters should be discussed by DSWP fairly
I am sending copies of this letter to Thompson, Roberts, Urwick, Thomas, Evans and McDonnell.
1
......
}
JE HANSFORD
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CONFIDENTIAL