2
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reductions are possible in our forces and defence facilities
OVCI'SEAB. Provisional decisions on these reductions have been
made) but
we must now consult our allies and partners on Me
precise scope and timing of these changes, Consulta timy zi!!
begin at once.
6. The brood financial effect of the Government's plan wil
be to reduce Defence expenditure from ito present level of
about 5% of GNP to 42% of GNP over the next ten yerope.
7. The changes we plan will be made deliberately and
i
progressively and will enable the necessary manpower adjutante
to be made with a minimum of redundancies, both Service and
civilian. For those who are made redundant Fair termin 2311 5
offered. Similarly the changes in our equipment programme & i.
+
be made as smoothly as possible and with the maximum of nothe
to enable industry to adjust its plans.
8. Early next year, when our consultations, both inside sond
outside NATO, have been concluded, we shall submit to Prizmend
a White Paper describing our decisions and how they are be by
put into effect.
CONFIDENTIAL