3528 200M 2/74 Cr.P.C. 839/3
NOTHING TO BE WRITTEN IN THIS MARGIN
SECRET
works programmes compatible with the Defence Review
force levels. The essential elements of our forces
and thus of our contribution to NATO will remain intac
Defence expenditure for 1976/77 will be held at about
the same level as for 1975-76. But expenditure for
the next few years, inparticular that on the equipment
inde icule
programme, will still be higher than for 1974/75.
3. You will receive a telegraphic summary of the
Chancellor's statement in the Verbatim series
together with a guidance telegram setting out the
general budget strategy. If question you and other
addressees may draw on paragraphs 1 and 2 above.
"We also hope to send you by 1200z tomorrow the text of
14.
a brief statement on the defence expenditure aspects
of the Budget which you could make to your Council
colleagues if you thought it appropriate.