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believe that he is more concerned at the moment with his proposals for the general level of public expenditure (which could of course affect defence expenditure later).
They also understand that Treasury officials are not briefing him to question the small add-backs proposed in response to NATO's criticism of our proposal to withdraw from the Mediterranean, especially since we are undertaking only to study the second group of possible add-backs and are not committed to them. The MOD therefore expect any opposition in Cabinet to Defence Review decisions to concentrate on the four major unresolved non-NATO commitments (Cyprus, Brunei, Masirah and Hong Kong). Mr Mason will defend these but, since political considerations predominate in each case, he will look for support from the Secretary of State.
LL. The MOD anticipate that Mr Mason could also come under attack from Mr Benn for not having consulted all sides of industry about the Defence Review decisions.
The National Defence Industries Council has in fact been con- sulted and Department of Industry officials have been kept in close touch, but Mr Benn himself has not been formally consulted by Mr Mason, nor have the TUC. The decision not to consult the TUC was Mr Mason's own, and he can be expected to defend it; he will make it clear that he intends to consult them fully about the implementation of the decisions. If Mr Benn should contend that he ought to have been more formally con- sulted, Mr Mason will point out that his officials had every opportunity of bringing Mr Benn into the picture.
5. Heads of Department to whom I have spoken have agreed that because there will be no comprehensive covering memorandum about the consultative process, the brief for the Secretary of State may need to be slightly fuller than the brief for the OPD meeting last week, especially on the NATO add-backs and the four outstanding non-ÑATO commitments.
I should be very grateful if I could have Departments' contri- butions by close of play today.
25 February 1975
Teddy Jacke
J E Jackson Defence Department
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