SECRET

in which we propose to reduce defence expenditure have already

been taken, and that consultation is no more than a formality.

10.

What we say to our non-NATO Allies at the time the

Farliamentary statement is made will also need careful

consideration. The Cabinet will no doubt leave the detailed

arrangements for non-NATO consultation to the Secretary of

State in consultation with the Defence Secretary. If asked

how long these consultations are likely to take, the Secretary

of State might say that he would hope to complete the non-NATO

consultations by the end of the year.

SECRET

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