TNAG-0475-FCO40-540-Contributions-of-Hong-Kong-for-costs-on-maintaining-military-1974 — Page 83

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position clear to the Governments concerned.

The

New Zealand Prime Minister for his part has already

said that any further changes affecting the Five

Power arrangements would be undesirable, and we have

today heard from Wellington that the New Zealand Government have asked to be fully consulted if any

are contemplated.

4. Nor incidentally would I at this stage go as far as the Defence Secretary in implying that our

commitments and forces East of Suez (other than

Hong Kong) should necessarily be the first candidates

for any cuts or be treated as a group.

5. I should therefore be opposed to any announcement in the Budget Speech about reductions in our defence expenditure which specified how and where they might

fall on our overseas commitments.

6. I am sending copies of this minute to the

Prime Minister, the Defence Secretary, the Secretary

of State for Industry and Sir John Hunt.

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