TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 200

SECIDA

16 The Government is satisfied, after careful and considered tudy, that the general principles which have been fundamental

to the Review throughout its course, and the Government's

proposals derived from them, are based on sound military criteria;

will not undermine the strategy, security or cohesion of the

NATO Alliance, or the security of our other allies and partners;

and are consistent with the repeated pledges of the Government to

reduce the cost of defence as a proportion of our national

resources.

17.

Accordingly, the Government has decided to reduce defence

expenditure as a proportion of GNP from its present level of

5 per cent to 4 per cent over the next ten years. Under the

plans which we inherited in March 1974, defence expenditure

would have amounted to 6% of GNP in 1978/79 and 51% in 1983/84.

By comparison with those plans, our decision will save £475m.

a year by 1978/79 and some £750m. a year by 1983/84

over the whole period up to that date of about £4300m.

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or a total

Early next year, when our consultations have been concluded,

I shall be submitting for Parliamentary consideration a White Paper

describing our decisions and how they are to be put into effect.

But before this we wish not only to consult our allies and partners

but to learn the views of Rt. Hon, and Hon. Members upon these matters;

and the Government will be ready to arrange through the usual

channels for an early debate.

14 November 1974

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