TNAG-0538-FCO40-633-Strength-of-garrison-in-Hong-Kong-1975 — Page 34

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NATO's conventional military capability vis-à-vis the Warsaw Fact".

Tt expresses particular and grave concern about the effect of our

reductions on the Northern and Southern Flanks.

6. In effect NATO is urging us to reconsider the resource decision

which we took at the end of last year and which formed the firm

basis for our consultations with our Allies.

Our reactions to NATO's response

7. From the outset of the consultations we made clear to our

Allies that the Government's decision about the level of resources

we planned to allocate to defence over the Review period was firm;

only variations within this level were negotiable. It is this

decision, rather than the priorities we have followed in making

our NATO reductions, that has so upset our Allies. We knew that

this would be their reaction, but they have produced no reasons for

our varying the painful decision we took earlier. I consider that

there is no question but that, consistently with the Government's

economic strategy, we should stick to that decision.

Short of our reviewing our decision on resources, NATO is also

recommending that we should, as a minimum, review those aspects of

our proposals which have the most damaging effects on the overall

Allied defence posture, in order to:-

(a)

maintain a UK maritime and air presence in the

Southern region;

(b)

raise the forecast level of UK capabilities in

the anti-submarine warfare (ASW) and mine counter-

measures (MCM) fields in the ACLANT/ACCHAN areas;

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