TNAG-0475-FCO40-540-Contributions-of-Hong-Kong-for-costs-on-maintaining-military-1974 — Page 79

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Mr Thomson

Sir G Arthur

Private Secretary

cc PS to Mr Hattersley

PS to Mr Ennals

PS to Mr Roberts

PS to PUS

Mr Cable

Mr Wilford

Mr Wiggin Mr Youde Mr Aspin Mr Weir

DEFENCE EXPENDITURE

RECEIVED IN. REGISTRY No. 51

21 MAR 1974

HILIKLIO

لحر

Mr Wright MED Mr Hickman SWPD Mr Stuart HKIOD Mr Tickell

1. Mr Acland has suggested that the Secretary of State might

like to comment on a minute from the Chancellor of the Exchequer

to the Defence Secretary proposing a further cut of £72 m in

1974-75 defence spending.

2. The Defence Secretary has already sent a holding answer which

covers very fully the main point of interest to us, viz the need

not to say anything in public prematurely about possible withdrawal

of forces in Singapore or East of Suez generally. The MOD

(Mr Hockaday) agree that it would nevertheless be valuable for the

Secretary of State to follow up Mr Mason's minute, and I submit

a draft, the lines of which I have cleared with Mr Hockaday.

3. As regards Singapore, substantial changes have taken place

since we considered these matters in 1968, and hasty decisions

now would create political difficulties for us. We could not

withdraw our forces without reconsidering the Five Power

Defence Arrangements as a whole, in particular whether we could

continue to honour the commitment undertaken by our predecessors

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