CONFIDENTIAL

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8. Short of our reviewing our decision on resources, NATO recommends that we should, as a minimum, review those aspects of our proposals which have the most damaging effects on the overall Allied defence posture, in order to:-

(a) maintain a UK maritime and air presence in the Southern

region;

(b)

raise the forecast level of UK capabilities in the anti-submarine warfare (ASW) and mine countermeasures (MCH) fields in the ACLANT/ACCHAN areas;

(c)

include an option for deployment to the Southern Region amongst the tasks envisaged for the UK land and air force contributions to 'SACEUR's strategic reserve;

(a) increase their capabilities for effective and timely

reinforcement of the Northern Region beyond the current proposals.

They also wish us to continue consultations with them to help achieve these aims.

nor has

9. If we were to do anything of military significance to meet these points within the resources we have allocated to defence, we would need to shift resources from one area of NATO to another and hence to change the strategic priorities underlying our 3rd December proposals. I cannot recommend such a course; NATO made constructive proposals of this kind. But I do recommend certain gestures to meet the points of concern to NATO, strict understanding that none would entail more than minimal (1.e. £ m a year) extra costs. Such gestures would have little real military value, but would be of considerable political

significance.

on the

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