SECRET
DEFENCE REVIEW
DRAFT OUTLINE OF PARLIAMENTARY STATEMENT
APPENDIX A
1. References to: March 21 1974 Parliamentary Statement,
2.
3.
October 1974 Manifesto commitment
(similar to February Manifesto) Queen's Speech.
The economic burden of defence spending.
General approach to Review: rational and thorough reappraisal of whole of defence policy and programmes, as promised from outset, over full ten-year forward period. Allows sensible and progressive adjustment of forward programme from level inherited by Government in February 1974 to new level over the next few years. Quicker adjustment wasteful and irrespondible.
4.. Review guided by priorities for defence. Britain no longer
a great world-wide power. Need to concentrate limited resources on security of UK which is inextricably bound up with security of NATO Alliance. [other lower priority objectives, however desirable, must take second place
5.
Undertaking given in March 21 Statement to consult allies before reaching definitive decisions. Since UK security inseparable from Alliance security no final decisions possible prior to consultation. Importance which HMG attaches to holding full and meaningful consultations with all allies and especially NATO allies. Final decisions to be announced, in February 1975 White Paper, will be taken only in the light of consultations with allies and partners. Right, however, that we should tell Parliament at this stage of the provisional conclusions which we shall be putting to our allies in these consultations.
keview of Commitments Outside NATO
6.
Review necessarily starts by weighing current commitments, capabilities in relation to the security of the UK, treaty and other obligations, and political, economic, etc., interests.
SECRET
/As made