TNAG-0476-FCO40-541-Strength-of-garrison-in-Hong-Kong-1974 — Page 40

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(i) a firm decision on the level of defence expenditure at a

(ii)

(111)

(iv)

specified point or points in time;

a policy statement on cuts in the non-NATO area embodying

some specific decisions on withdrawals, eg in the Far East

(see Option A, paragraph 60 above);

the broad implications of (1) and (ii) above in terms of the

overall size and shape of the Armed Forces and associated

civilian establishment worldwide;

the immediate start of discussions with our allies in NATO

about the form of whatever changes may be necessary in the

shape and content of the British military contribution to

the Alliance. Cuts would, of course, have to be designed

to meet the full extent of the overall financial para-

meters decided on by Ministers but their details would be

worked out in consultation, coordination and cooperation

with our allies.

Once these broad decisions have been taken, and subject in particular to the decision on (i) above, the staffs concerned will be able to work out their detailed implications, in terms not only of front line capabilities but also of Service and civilian manpower levels, of effects on administration, headquarters and support units, and of industrial and employment consequences. These detailed implications,

including the reactions of allies, can then be displayed to Ministers

for decisions on important details.

Consultations with Allies

64.

Ministers are committed to consultations with our NATO allies.

There are both negative and positive objectives in such consultations.

On the negative side this is the best method of limiting the

inevitable demage that will be done to our standing by cuts in our

NATO effort. The front line strength of British forces committed to

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