TNAG-0475-FCO40-540-Contributions-of-Hong-Kong-for-costs-on-maintaining-military-1974 — Page 90

SECRET

OF

CELLOR

THE EXCHEQUER

.4. In these circumstances I suggest that it should be

possible to secure a total further saving on defence

expenditure of £72m in 1974-75 without doing any severe

damage to the capabilities of the Forces, though there

would need to be severe restrictions on any new orders

and perhaps cancellations of some existing orders. I

therefore hope you will be able to see your way to agree

to this proposal, and to do so very quickly since, if these

additional savings are to secure the maximum impact, I

need to take them into account and announce them in my Budget. I am sure that the impact will be greatly enhanced

if we can couple an announcement of the savings with an

announcement of our intentions on Singapore.

5. I am sending copies of this minute to the Prime

Minister, the Foreign and Commonwealth Secretary, the

Secretary of State for Industry and Sir John Hunt.

SECRET

DWH

13 March, 1974

Page 90Page 91

SCR 20/1486/70 II

سلام

стри

E

Mr B. Webet

3511, MOD.

Dear Andrew