CONFIDENTIAL,

CONS IDENTE

16.

Industry has been consulted where its interests are affected

by the proposals, and its views have been taken into account in

the Government's decisions (see paragraphs 71).

Ministry

of Defence civilian staffs have also been consulted (paragraphs 69

to 70).

THE GOVERNMENT'S DECISIONS

17. The Government have now taken the basic decisions on the

Defence Review which are outlined in the following paragraphs.

To achieve the economic as well as the military and political

objectives of the Review, Britain's defence forces had to be

concentrated on those areas in which a British contribution to

collective defence would be most effective in ensuring Britain's

security and that of her Allies. This meant that NATO the linch

pin of British security should remain the first and overriding

charge on the resources available for defence; that our commitments

outside the Alliance should be reduced as far as possible to avoid

overstretching our forces; and that general purpose forces should

be maintained as an insurance against the unforeseen.

18.

-

The Government's decisions are far-reaching and their

implementation in terms of men, equipment and facilities will naturally

take time to work out in detail. This work is being pressed ahead

urgently. The Government attaches great importance to giving the

earliest possible information to those who may be affected, whether

in the Services, in the Civil Service or in industry.

Continuing Commitment to NATO

19. In reaching its decisions the Government had to decide the level

of defence and the balance of forces which Britain should maintain to

ensure security in the current era of detente between East and West.

I-7

CONFOURIENTIAL

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