TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 223

Моксиния мокаете

Mhalmer

Pesqui

Адиий

Milan and

CELIOR C

EXCHE

REC

RE

10 MAK 775

HKK 10

1

men ikej,

102,

Chambers, Parliament Street, SWIP BAG

7/3

THE DEFENCE SECRETARY

see g

01-930 1234

Reg

STATEMENT ON DEFENCE ESTIMATES 1975

Mus. 57-3

*

Dison...

Mil

Thank you for sending me a copy of your minute of 28th February to the Prime Minister about how the defence expenditure figures should be expressed.

2.

I agree with the reasons you give for letting the text of the Defence White Paper stand. Furthermore, to describe the figures as provisional now that we have taken our final decisions on the Defence Review could lead to erroneous speculation that we might in the event be prepared to consider increasing the figures. This would be highly undesirable.

:

3. For the record however I should make it clear that this does not mean that defence can be exempted from any further cuts we may be forced to make in public expenditure. We agreed last November that the defence budget figures for years after 1975/76 were to be. provisional pending the completion of consultations with our Allies and the preparation of the 1975 Long Term Costings. It was clearly understood that we would not be precluded from taking a further look at defence expenditure levels in the course of this year's Public Expenditure Survey. It is therefore important that, when the Defence White Paper is published, nothing should be said which could imply that the Defence Review figures are immutable for the next five years, let alone for the next ten, irrespective of the state of the economy. In this respect the defence programme will be in the same position as all other public expenditure programmes.

X.

I am sending copies of this minute to the recipients of yours.

(D.W.H.)

S March, 1975