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SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

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SECRET

DRAFT

Type 1 +

FROM

To:-

Sir G Arthur

Telephone No. Ext.

Private Secretary

Department

cc Sir J Killick

Sir D Watson A

Mr Campbell

Mr Male

Mr Cable Mr Goodison,

SEED Mr Stuart,

IKIOD Mr Hickman,

SWPD Mr Thomas,

STED

Lord N Gordon-

Lennox, NAD

Mr McLaren,

WOD

Mr Clark, MED

V

DEFENCE REVIEW: NON NATO COMMITMENTS

1. In a minute of 8 August to the Prime Minister the Chancellor of the Exchequer suggests that because of the likely need for something to be said publicly before the end of September, or earlier to other Ministers and the National Executive Committee of the Labour Party, about the Government's future defence spending HMG should not delay consulting those concerned outside NATO about the proposed reductions East of Suez and in the Mediterranean.

suggests that the Secretary of State might find it useful to keep "the planned run down in Cyprus" as one of his objectives in negotiations with Greece and Turkey. The Secretary of State

He also

has asked for advice. He does not think we need

hurry the matter for a week or so but asks when we should begin consultations.

2.

Ideally we should wait until Ministers have reached firmer conclusions about future defence expenditure as a whole before we start consultations on reductions in the Mediterranean and non NATO

This was what Ministers decided at the CPD meeting on 1 August that we should do. Indeed it is logical in view of their public position since the beginning of the Review that decisions would

/not

areas.

B

בב

(2002) Dmd. 145244 400M 10/73 L.Ltd. 839/1

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