TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 7

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* Hunt linberts

[TEXT]

nce copies

Cinco News Depole.

TUBLIC EXPENDITURE 1976-77: DEFENCE

1.

In his budget statement this afternoon the

Chancellor of the Exchequer will announce cuts of 3900m

in planned public expenditure at 1974 Survey prices for

This the financial year 1976/77. Of which 110m will come from

the Defence Budget. The revised total expenditure on

defence for 1976/77 will be £3,690m, and there will be

consequential savings on the defence vote in 1975-76,

possibly of the order of a quarter of the 1976-1977 sDV-

ings.

2.

The bulk of the savings, both in 1975/76 and 1076/0

is expected to come from adjustments of the equipment and

/worka

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