TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 91

CONFIDENTIAL

232

JE Jackson Esq

Defence Department

Foreign and Commonwealth Office

SW1

Dear Teddy,

DEFENCE REVIEW

ce

ACDD.

BRITISH EMBASSY,

TEHRAN.

5 December 1974

Mu. H. Bwin Corberos

Mer. I. Homfort. By

1. H. Blocks Dalthod.

Jh. Bullard, toɔð.

M. Thomson

IKTOD/SAD.

You will have dh

seen my telegram No 663 reporting briefl

the satisfactory exchange with the Shah about the Defence Review. Harry Walsh will not be making a full record of this part of the Audience: hence I are writing this letter to fill in the gaps.

Mr Lever started by explaining that the proposels in the Defence Review did not in reality amount to a reduction in Britain's defence capability. In fact, in real terms, our capablility would be increasing. Britain was as det rmined as ever to maint in adequate forged to meet her defence commitments. The Defence Pevier Draport; essentially amounted to minor readjustments. We believed that we must concentrate more on NATO. In spite of détente, Soviet forces had been increased in Central Europe. We must see to it that we were in a postion to respond to this challenge.

5. Ir Lever emphasised that he was here to bin the cess of consultation with the Shah on the Defence "evie" proposals. He was not simply telling the Shah of hard and fast decisions already made. The Prime Mini ter hpd particularly wanted him to start the consultations with the Shah before the statement was made in Parliamnt hence his early visit to Tehran.

་་་

4. At the point the Shah interjected that the Soviels had not only increased the size of their armed forec they had increased their offensive capability. Hc condi understand our feeling that we mu t strengthen our position in NATO. The Soviet Union was also atren tenin its offensive capability in the Middle East.

CONFIDENTIAL

15.