PRIME MINISTER

PM/74/73

SECRET

Defence Review:

Parliamentary Statement

I have seen the Defence Secretary's minute of 6 November

to you and agree with his view that one statement would be

preferable to two. Given our public undertaking to consult

our Allies, it will be difficult at this early stage to find

enough material for two statements.

I do not think that the date of the statement need be

determined by Party Conference considerations.

That aspect

of the problem should be manageable and I see no reason why

you should not say to Conference that we have taken our

decision about financial levels in accordance with the

Manifesto and that we shall shortly be making a statement

to Parliament.

The statement might therefore be made either on Thursday

the latter seems close

28 November or on Tuesday 3 December

enough to the Lord President's phrase about the "end of

November".

Whichever day we choose should preferably be the

day on which the presentation to NATO is made. But I believe

that we ought to approach some of our non-NATO Allies to whom

we shall be giving unwelcome news a very few days sooner in

strict confidence so that they do not have the feeling that

SECRET

they are/

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