TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 239

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to take certain measures to allay some of NATO's concerns;

these measures, which are set out in Chapter 1 of the White

Paper, are minor in character, would cost less than £1 million a year, and are to be found from within the agreed Defence Budget. But a largely cosmetic gesture of this sort should help us with NATO. Although our allies do not like what we are doing I think we should stand firm. We cannot pretend

that NATO will not be weakened on the flanks by what we are

doing, but I think we have stopped short of undermining the

credibility of NATO and of giving others a justification for

cutting their own forces.

For these reasons the Defence White Paper is not an exact

mirror image of the original proposals which Cabinet approved

for discussion with our allies. But there is no change in the

force levels which were approved and the small additional cost

can be found from within the agreed Defence Budget.

Copies of this minute go to all other members of the Cabinet (together with copies of your minute of 28 February for those who, not being members of OPD, will not yet have

seen it) and to Sir John Hunt..

4 March 1975

(SGD) HAROLD WILSON

-C