SECRET UK EYES A

scheme no less favourable to the UK than 50% at the start and

75% at the end of a 5 or 7 year agreement.

Within these

guidelines officials should be empowered to reach the most

advantageous settlement possible.

Recommendation.

6.

I, therefore, invite my colleagues to agree:-

a. That the reduced garrison described at

paragraph 3 should be accepted as the basis

for the Cost Agreement negotiations.

b. That our negotiating aims and tactics

should be as described in paragraph 5 above.

(1) MO 9/1/5 dated 11th February 1975

(2) M34/75 dated 20th February 1975

(3) 1975/76 estimates prices are used throughout this paper

SECRET UK EYES A

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