TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 11

CONDIGNEMAL

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

3. 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.

Europe,

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

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

deterrence. 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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CONFIDENTIAL

CONFIDENTIAL