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9. Reductions to the Second, Third or Fourth Levels would bring still more drastic consequences. Any of the reductions under consideration would involve damage to British standing and an erosion of our position world-wide. There would be particular repercussions on our relations with the United States and on our bargaining power in Europe.
10.
Withdrawals from our non-NATO commitments would have lesser but still serious consequences dependent upon their extent. Withdrawal from dependent territories under threat of attack would be unprecedented. ..ithdrawal from certain other commitments would effectively end Commonwealth links in the defence field. The Americans, though they value our contribution to NATO above all, still place great importance upon our role in several of our overseas commitments. The different considerations involved in reducing these various commitments make it impossible to sum up the situation in general terms. Nevertheless we have a commitment to consult our overseas partners, and our obligations and interests require that this consultation should also be full and tirely. 11. Turning to the modalities of consultation we recommend that Ministers should authorise the early opening of informal bil-teral consultations, first with the Americans and then with the Germans. Formal Alliance consultation should then follow. We could not mat away with allowing less than two clear months for this, and some for to six weeks of the reriod world consist of intensive discussions at officiel and linisterial level. However we strongly recommend that we should do more than the minimum of consultation. he rolitical damage to the Alliance, and to our place in it, will be much reduced if we take a lead in promoting effective NATO proprsi IOS of specialisation and standardisation in defence efforts and equipment to ensure that the alliance as a whole makes better use of available resources. Efforts to devise such programmes are already being made in NATO, and the Americans and Germans she re the view that a major political initiative, in which the buro-roup would play an important role, is now overdue. The requirement for such longer term consultation need not conflict with Iinisters' declared intention to announce in the course of this year the main results of the Defence Review, e.g. the future level of defence expenditure and the general shape and size of our armed forces in the late 70's and 80's. Consultation following such an announcement would concern only particular programmes and commitments.
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