PRIME MINISTER
PM/74/38
SECRET
Mr Stuart
·HKIGD
83
RECEIVED REGISTRY No.52
29 AUG 1974
Defence Review
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I have seen the Chancellor of the Exchequer's
minute of 8 August suggesting that we should not deay
consultations with our non-NATO allies about our proposed
reductions East of Suez and in the Mediterranean.
I do not think we can start these until we have
consulted the Americans about the outcome of the Defence
Review as a whole, as we have always intended to do. This
consultation with the Americans will be even more important
now as an example of the way we hope to develop Anglo-US
relations under Mr. Ford, and I am sure that they would
react unfavourably if we were to ask them to comment on
our plans for non-NATO areas but could not talk to them
about the NATO area at the same time.
However, I think we can move ahead on some questions.
We are already in touch with the Governor of Hong Kong about
SECRET
/ future,
A