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DEFENCE REVIEW
Report by the Steering Committee
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Introduction
Our terms of reference in preparing this report were
"To review defence policies and priorities taking into consideration probable constraints upon public expenditure in the next ten years, to identify options for changes in our capabilities and commitments, taking into account the implications for our defence and oversea interests and to make recommendations to the Defence and Oversea Policy Committee not later than July 1974."
2. We were given no specific financial target but were required to examine the consequences of reducing defence expenditure, 'at present taking about 5 per cent of GNP, in the following alternative ways
3.
First Level
Second Level
Third Level
Fourth Level
42 per cent of GNP by 1983-84 4 per cent of GNP by 1978-79
4 per cent of GNP by 1983-84
4 per cent of GNP by 1978-79
As a working assumption we were asked to consider our commitments in the following ascending order of importance
i. Far East and South East Asia
ii. CENTO and otherwise in the Middle East
iii. South Atlantic and Caribbean
iv. The AFSOUTH area of Allied Command Europe and Mediterranean generally
Reinforcement and assault force capability'
V.
vi. Allied Command Europe (excluding AFSOUTH), ACLANT, and ACCHAN,
Contribution to NATO strategio deterrent, security of the
United Kingdom base.
But we were not to assume that there would necessarily be the abandonment or severe reduction of all our commitments in one area before reducing our commitments in another area of higher priority.
4.
Our report is based on a great deal of detailed work carried out by the Defence Studies Working Party and on threat assessments by the JIC. In our attempt to concentrate on the basis issues and to present the main points for decision, within a paper of reasonable length, we have been obliged to omit muoh of the detail; but we could if required produce fuller information on particular points with little delay.
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