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Department
DEFENCE
OUTWARD
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.....JE JACKSON
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MB 1541
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HONG KONG
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Tel. No.
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Distribution:-
Files
Sir G Arthur
Mr Wilford
Defence D HAIOD
Sir D Watson Mr Male
Copies to:-
Mr HFT Smith,
Cabinet Office.
Mr A P Hockaday,
MOD
R/Adm Moreton,
MOD
Mr JE Hansford,
Treasury.
[TEXT]
DEFENCE REVIEW: HONG KONG
1.
As you know, the principles underlying the Defence Review are (a) the Government's declared policy in Britain's present and prospective economic situation that defence expenditure should be reduced by several hundred million pounds a year over a period; and (b) their decision to give first priority to the security of the United Kingdom, which in turn rests upon our member- ship of the North Atlantic Alliance.
2.
Against this background Ministers are giving close consideration to the concept of a Critical Level of military capability which in the judgement of the Chiefs
of Staff represents the minimum British contribution of forces to NATO below which the credibility of NATO's strategy of deterrence, flexibility in response, and
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