TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 124

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SECRET

effective Alliance defence, in which the British

contribution is responsive to the contributions of

others, we have not tried to finalise details down

to the last corma. We accept the ideas which lie

behind the US "llatrix" concept whereby on element

of rationalisation in Allied defence efforts should

be achieved. we attach a high priority to the achieveme

Greates

standardi

prit of standardisation in Allied defence

equipment, and we believe that stendardisation

properly pursued should ensure more defence 187

dollar spent. Were we now to lay down hard and

fast programmes covering the 10-year period ghend,

we would not be in a position properly to contribute.

to the Allied endeavours in these fields which have

Linde ach

been encouraged from washington. In the working out

year by year of the detailed implications of the

proposals which we shall now put to the Alliance,

we shall be concerned to take account of allied

views. Thus the scope of the Defence lovicu

deliberately limited.

Resources for Defence

6. Our economic performance since the War bes

legged well behind our major European neighbours. During the 1950's and 60's France and Germany

achieved a growth rate of at least 5% a year in real terms. By contrast, British GNI prev at rome 24% per year. Over a period of years this kind of

difference in the annual increment to national

outṛut makes a drematic difference to the resources available to Government for allocation to public

The improvement of.

programmes and personal living standards. While our

national income rose by a half in this period, that

(17255) Dd.145173 400m $/73 G.W.B.Ltd Gp.253

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