TNAG-0476-FCO40-541-Strength-of-garrison-in-Hong-Kong-1974 — Page 84

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XIV. OPTION F - THE SCOPE FOR REALLOCATION OF RESOURCES AT LEVELS OF

EXPENDITURE BELOW THE CRITICAL LEVEL

Reallocation of resources

127. In Options D and E it has been shown that the measures that

might have to be taken to reach the First level or lower levels

of defence expenditure are so severe that every facet of NATO

strategy would be affected and Alliance confidence in it damaged.

It might in theory be possible to modify, and in certain cases,

confine the damage by reallocating resources from one sphere of

defence activity to another, and hence to strike a new and different

balance in the British contribution to the Alliance from the one

outlined in Options C, D and E above. However, the scale of the

damage in every sphere precludes alleviation by merely making minor

adjustments between the Services and/or PE. It would only be by

cutting out major packages of capability in one area and transferring

the resultant savings to another that damage might be confined to

selected sectors of the defence effort rather than affecting the

whole.

Approach F1

128. Various ways of achieving this have been suggested. They have

been examined on an illustrative basis and are summarised in

Annexes P to AA. The subjects examined are:

Maritime forces

ส. Placing in reserve half the forces

provided for ASW operations.

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(Annex P)

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Possible Annual Reductions

£50-60m