TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 8

3528 200M 2/74 Cr.P.C. 839/3

NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET

works programmes compatible with the Defence Review

force levels. The essential elements of our forces

and thus of our contribution to NATO will remain intac

Defence expenditure for 1976/77 will be held at about

the same level as for 1975-76. But expenditure for

the next few years, inparticular that on the equipment

inde icule

programme, will still be higher than for 1974/75.

3. You will receive a telegraphic summary of the

Chancellor's statement in the Verbatim series

together with a guidance telegram setting out the

general budget strategy. If question you and other

addressees may draw on paragraphs 1 and 2 above.

"We also hope to send you by 1200z tomorrow the text of

14.

a brief statement on the defence expenditure aspects

of the Budget which you could make to your Council

colleagues if you thought it appropriate.