of European reductions in Phase II of MBFR, and in the prevailing

financial circumstances, we are examining ways of restructuring the

Army without loss of combat capability and without having to

reduce its frontage in Germany. Given the reductions that we

are making elsewhere in the Army, that part of it stationed in

Germany will in the future form an even larger proportion of our

overall Army than it does now.

16. On the equipment side, while we shall have to make some

adjustments to our programme, we intend that the Army in

Germany should continue to be equipped at the high standard its

role and responsibility require; and we shall pay particular

regard to the guidance NATO has agreed on priorities, for example

in anti-armour provision.

SLIDE 5

ON

Air Forces

17.

Now for our air forces. The main elements of our combat

air strength will be maintained in tact. We do not propose to

reduce the * contribution we make to 2 ATAF in Germany, with

its offensive, defensive and reconnaissance capabilities.

SLIDE 5 OFF

18. In the United Kingdom, we base dual-capable offensive

air forces which include Buccaneer and Jaguar strike/attack

squadrons and the Vulcan strike force. We will reinforce

the latter with two Vulcans squadrons now in Cyprus.

NATO has

made it repeatedly clear that such dual-capable aircraft form

an essential component of its deterrent posture, and we intend

to maintain this commitment. * In view of the critical

importance of the European multi-role combat aircraft, there is

8

SECRET UK EHES A

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