TNAG-0538-FCO40-633-Strength-of-garrison-in-Hong-Kong-1975 — Page 50

CONFIDENTIAL

CONFIDENTIAL

DRAFT

ANNEX C to OPD(75)

1.

My colleagues and I have studied with interest your letter

of[February conveying to the British Government the views of

the other members of the Defence Planning Committee on our Defence

Review proposals. I should like to take this opportunity to

express my thanks to the Defence Planning Committee and the NATO

Military Committee for the hard work that has been done to enable

these views to be conveyed to us within the timescale that we

proposed.

2. I am grateful for the sympathetic way in which you have

expressed your understanding of the economic difficulties which

the UK faces and which we regard as unique in terms both of our

rate of economic growth, our balance of payments and the burden

of defence spending which our economy bears. I also welcome the

tribute which you have paid to the important military contribution

which we make to Allied defence. It was, as I am sure you realise,

no easy task for us to propose reductions in our defence contri-

bution or to decide where such reductions could with least damage

be made. But our proposals were put forward on the basis that, as

you have noted, NATO is regarded by the British Government as the

linch pin of our security and will remain as the first charge on

British defence expenditure. Against this background our proposals

were designed to accomplish the savings which we had decided were

necessary in such a way as to ensure that the continuing British

contribution to the Alliance would be used where it would be most

effective.

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C-1

CONFIDENTIAL