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the proportion of our forces which we forward-base
on continental Europe is higher than the proportion
of US forces so based, that the impact of such force:
on our economy is greater than on the American
economy, and that our overall balance of payments
rosition is far less satisfactory than the United
States'. Compared to our European Allies, we are not
only spending on defence a ve
higher
proportion of a relatively stagnant national income,
tar
but we are spending a higher proportion of it in
foreign exchange.
11.
Thus we can justifiably claim that our case in.
sui generis. We believe it right to provide the
We shall explai mat while Alliance with the full facts. There will be ro
decrease in real terms in our defence spending, dark
we shall be reducing planned, expenditure, and
expenditure as a proportion of GNI'. The fire at
which we shall stabilise will be some 4.5%
well above the present Eurorean/NATO average.
we need to ensure is that our performance is not
unjustifiably equated with those of the Dutch and the
Danes, a and does not lead such countries still further
to reduce their already inadequate efforts.
1 roposals
What
12.
for you by Field Marshall Sir Michael Carver. 1
think it right however at this stage to introduce
his presentation by a short discussion of the
principu political criteria which we have followed
The details of our proposals will be set out
in identifying our priorities. I shall tlk first
about the Alliance.
NATO
13. Throughout the review we have been det
FINCHMA
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