t

2.

(e)

in order to transfer it to the KOD;

[if MCD argue that the case for accepting

NSS is essentially political.] It is also

in our defence interests to see that a CAB

is properly verified, and 130 will be essential for this if the treaty ic extended.

We have the impression that the Cabinet Office will recommend

to the Prime Minister that MOD should bear the costs. If Ministers so decide and the Defence Secretary says part of the money must come from the Contingency Reserve, the Secretary of State might agree to. support this.

RECOMMENDATIONS

9.

I recommend that when Ministers meet the Secretary of State should support option (b) in paragraph 15 of the paper;

and argue that the MOD should bear the costs falling to the UK. .10. Finance Department concur.

25 January 1979

CDC Mallaby

Arms Control and Disarmament Department

copied to:

PS/PUS

Sir A Duff·

Mr Moberly.

Finance Department

I agree.

This is virtually certain to be the main issue of substance when negotiations resume on 5 February. The Russians will not move on any other issue without an authoritative UK response, and the Americans are only ready to move on this subject. It is therefore highly desir- able that Ministers should decice between Options a. and b. so that we can inform the Americans by 2 February and get the negotiations off to a good start on 5 February.

25 January 1979

مسموه به روسیلی

JC EDMONDS

DONGTAT

Ľ

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