TNAG-0476-FCO40-541-Strength-of-garrison-in-Hong-Kong-1974 — Page 68

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111. Detailed changes in the measures necessary to reach the First

level would not, however, significantly alter the broad nature of

The differences

the implications of reductions to the First level.

in money savings are in any case comparatively small in 1978/9;

and as has been noted in paragraph above, it should be possible

from the mid-1980's to maintain the forces associated with the

Critical level within a defence budget of about 4% of GNP i.e. at

the First level.

112. Notwithstanding this, whatever measures would have to be taken

to reach the First level of saving from the Critical level would

have effects on our front line, on NATO strategy and on the

confidence of our Allies out of proportion to the additional

savings achieved. The reason for this is that, in determining the

Critical level of military capability, the Ministry of Defence has

made every possible economy consistent with preserving at all costs

the teeth arm units necessary to meet our basic force commitments

to NATO. Everything else has been pared to the bone. Measures

which cut deeper into the defence programme - even only a little

deeper, would therefore necessarily fall heavily on the teeth units

which form the hard core of our basic NATO commitments, and have

disproportionate military effects.

113. In sum, the measures, set out in detail in Annex M, that would

have to be taken to achieve reductions to the First level are:-

a.

Royal Navy

In order to reduce from the Critical level to the

First level, the Poyal Navy would have to pay off the

remaining ships of the amphibious capability and reduce

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