Specialisation and Standardisation, and have been very

interested in the US, 'Matrix' study for rationalisation in NATO. However, all this will of course require much detailed study in the Alliance, but none of the three concepts offer any early or simple alleviation of our equipment and support

costs.

Conclusions.

33.

Gentlemen, those are the proposals for the re-shaping

of our defence effort. NATO has been given the over-riding

priority and we believe that these proposals will maintain

NATO strategy. We have not tried to preserve the full

range of our present commitments with lesser quality or

skeleton forces. We have preferred to retain well-equipped,

high-quality forces, and we have concentrated them in those

areas of NATO where we believe they can make the most effective

contribution.

34.

We think it important that our Allies should see our

proposals in this light and, in particular, we would value

your support in convincing then that our reductions are

not likely to undermine NATO's ability to maintain both

its strategy and combat effectiveness. This presentation

is only the start of the process of bilateral consultation

between us. To assist in this process, we will now provide

you with a data book of our planned reductions, and will

of course make available any staff level presentations and

discussions you may require in amplification.

16

SECRET UK EYES A

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