TNAG-0476-FCO40-541-Strength-of-garrison-in-Hong-Kong-1974 — Page 88

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b.

c.

a year more than at the Critical level), but wished

to maintain the British contribution to two of the

components of NATO strategy at the Critical level, e.g. either the Maritime/Air Strategy plus defence of the UK base on the one hand, or the continental

Land/Air strategy plus defence of the UK base on the other), this could only be done by reducing the resources devoted to the third component of the

strategy to the Baseline level:

if Ministers were to require the Ministry of Defence

to reduce expenditure as a whole to the Baseline level in 1978/9 (saving an additional £600m a year more than at the Critical level), but wished to

maintain resources for one of the components of NATO strategy at the Critical level, this could be done only by reducing the resources devoted to the

other two components almost to the Fourth level;

if Ministers were to require the Ministry of Defence

to reduce expenditure as a whole to the Baseline level in 1983/4, but wished to maintain the resources

for one of the components of NATO strategy at the

Critical level, the savings forgone to meet this latter requirerent, about £200m a year, could be recovered only by reducing resources devoted to one of the other components by £200m below the Baseline

and Fourth levels; or to each of the other two components by £100m below the Baseline and Fourth

levels.

78.

SEGEGRET