TNAG-0476-FCO40-541-Strength-of-garrison-in-Hong-Kong-1974 — Page 63

surgen

;

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vi.

shock to NATO cohesion and to our standing

in the Alliance by taking a lead in promoting

a closer-knit Alliance structure through such

means as more integration of logistics,

rationalisation to avoid overlapping and high

costs and some specialisation in national tasks.

But such steps as these will take a considerable

time to produce dividends. Nevertheless by such

measures, with very careful presentation, with

flexibility over timing and provided that any

BAOR cuts are made in the BFR context we think

the cohesion of NATO would survive the shock

though our standing in it will be reduced.

The FR G

In their latest Defence White Paper, the Germans

have estimated that they have recently increased

their defence effort in terms of GNP percentage

points, and they have urged on the Secretary of

State for Defence the need not only for full

consultation about UK plans but also for a UK

defence effort that is both militarily and politi-

cally appropriate. They would look very critically

at reductions of the order in Option C and would

expect us to take good account of their representa-

tions.

They have said that they would not take up

any of our military burdens, and would at best only

contribute a very little extra to the financial

costs of our defence effort.

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