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financial aspect, but Mr Healey could conveivably propose some further amendment. If he does, it is important that any new wording should avoid any implication that the motives for our proposed withdrawal are political.
NATO Consultations
Dr Luns' letter containing the formal Alliance reaction to our proposals (Annex B) is on lines we had anticipated, Although we made it clear that Ministers had taken a firm decision on the resources which could be made available for
defence and that we would only be prepared to consider changes to our detailed proposals within this level of expenditure, it was to be expected that our Allies would
try to get us to change our minds. (The Secretary of State will recall that in 1973/7). NATO succeeded in persunding the Dutch Government to find extra money for defence after the Dutch defence proposals had been published.) But it is unlikely that many Allied Governments seriously expect Ministers to reconsider their basic decision about resources.
This makes it all the more important that we should do what we can to meet the concerns expressed by our Allies by showing some flexibility over detailed points, particul- arly those relating to the Mediterranean and the Northern Region. The palliative measures proposed by Mr Mason for immediate implementation (para. 11 of the paper) and for further study (para. 13) should prove helpful in this respect, and the Secretary of State may wish to express his support for them. The measures which it is suggested should be implemented immediately would be of little military significance and would cost virtually nothing, but they would be useful as political gestures. The measures
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