Reference......... DI...5/5.....

CONFIDENTIAL

Mr Weston, SEED

Mr Simeon, RID

Mr Hitch, MTD

Hr Fenn, Energy Department

Mr Williams, NENAD

Mr Clark, MED

Mr Spendlove, SEAD

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1975 STATEMENT ON THE DEFENCE ESTINATES

1. I now enclose the second draft of the 1975 Statement on the Defence Estimates (the White Paper). We commented on the previous draft in Mr Jackson's letter to Mr Mayne of DS22 of 4 December, a copy of which is attached. It would appear that most of our previous comments have been incorporated in this draft, but the position is a little complicated because the numbers of the paragraphs have been altered and you may therefore like to check this.

2. In this draft, the earlier Chapter I has been separated into two chapters; the first deals with the Defence Review, and will be circulated in draft separately towards the end of January, and the second with other defence developments. SEED, RID, LTD and Energy Department will wish to consider the relevant passages towards the end of Chapter II, while other departments will be concerned with the relatively minor references to their parts of the world in Chapter III.

3. We should be grateful for any comments you may have on the attached draft by 28 January; this will leave the field clear for any "Defence Review" amend- ments that may have to be made once the consultations with NATO and other allies are concluded early in February.

RB Camar

RL B Cormack Defence Department

8 January 1975

CONFIDENTIAL

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