CONFEENTIAL

12. From early December detailed consultations have been

conducted with our NATO Allies in accordance with the procedures

After an extensive laid down by the Alliance on such matters.

political and military assessment of the Government's proposals

within NATO, the Alliance's views and suggestions have been conveyed

The Government has carefully considered the points made by our non-NATO Allies and partners in its consultations with them

to us.

since the 3

December announcement.

13. Our partners and associates outside NATO have noted our

proposals with some regrets but have in general recognised the economic

Detailed discussions on the imperatives which led us to make them.

best way of effecting the withdrawals and reductions are in some cases still proceeding, and we have been able to accept some minor adjustments to the timetables we initially proposed in the interests of minimizing the transitional problems. Broadly however the effect of the consultations has been to confirm the proposals

announced on 3 December.

14.

Our NATO Allies have expressed sympathetic understanding of our economic difficulties; but considerable disquiet at the scale

of our reductions in NATO and their effects on NATO's conventional But they have not suggested capability vis à vis the Warsaw Pact. that we should follow a different set of priorities within this level of resources; or proposed a different balance of capabilities which they would prefer us to achieve within the same constraints. 15. Subject to continuing discussions with our Allies on certain details, the process of consultation with them has been substantially completed. 7 *

3

and is therefore

*This section forms part of Annex D to OPD (75) 3 subject to Ministerial approval of that paper

I-6

CONFIDENTIALL

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