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7. At the same time the Government was determined that the process of adjustment should safeguard the essential security interests of Britain and her Allies. It was clear that only a fundamental and rigorous reappraisal of all Britain's defence commitments and capabilities could provide the Government with the necessary information to enable it to strike the right balance between the needs of the economy and the needs of defence.
Conduct of the Review
8. The Review covered the whole of the forward period to 1983-84, to make possible an orderly adjustment of our defence structure to meet a different set of commitments and capabilities, and to allow for full military, financial, manpower, equipment and industrial
planning.
9.
Clear strategic priorities were established at the outset; but no arbitrary financial limit was set, which would have prejudiced the outcome of the analysis. Instead, the military, political, economic and industrial implications of different resource allocations were carefully considered.
Within NATO, the
Europe,
threat to the political and military security of Western including the military imbalance between the Alliance and the Warsaw Pact (see figs. 2 and 3), was taken fully into account in assessing the possible effect of any reductions in Britain's contribution upon the security of our Allies and upon the allied strategy of
de terrence. Similarly the political and military implications of
reductions outside NATO were fully considered.
10. On 3 December 1974 Parliament was informed of the Government's provisional conclusions and proposals for future defence policy, programmes and expenditure, as a basis for full consultations with
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