TNAG-0475-FCO40-540-Contributions-of-Hong-Kong-for-costs-on-maintaining-military-1974 — Page 78

#45181) Dd. 737490 750M 1/71 Hw.

GORET

الفائده

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential,

Restricted.

Unclassified.

PRIVACY MARKING

Сс

.......................................................................In Confidence

Prime Minister

Defence Secretary

Secretary of State for

Industry

Sir J Hunt

DRAFT

To:-

Chancellor of the Exchequer

DEFENCE EXPENDITURE 1974/75

Type 1 +

From

Secretary of State

Telephone No. & Ext.

Department

I have considered your minute of 13 March to the

Defence Secretary and his reply. I naturally accept

that in the present financial climate there will have

to be reductions in defence expenditure and it is

largely for this purpose that a Defence Review is in

train. I am strongly of the opinion that this review

cannot sensibly be treated piecemeal. Moreover

hurried announcements without adequate preparation

of the ground with the various Governments concerned

will lead to grave and unnecessary damage to our

overseas interests. Like the Defence Secretary

therefore I trust that you will be able to avoid any

reference in your Budget Speech to the reduction of

specific defence commitments.

NOTHING TO BE WRITTEN IN THIS MARGIN

AFGREN