CAB129-52 — Page 50

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4. Page 5xlanfizon into the possibility of reductions in the panaft200 of the United Kingdom forces in Germany, which is to take place in accordance with the Cabinet decision, relates to the longer-term position. I recognise that it is more difficult to effect reductions in the short-term, i.e. between the date of entry into force of the Contract, say 1st October, 1952, and 30th June, 1953,particularly as I understand that it is desirable that there should be some redeployment within the British Army of the Rhine on military grounds, which, if it took place, would increase expenditure. Nevertheless, I must ask my colleagues to give me some latitude in this matter. In a negotiation of this kind, where we have to reach

agreement first with the Americans and French and then between the three of us and the Germans, it is impossible to say in advance what kind of agreement it is possible to reach. I would hope, however, that a maximum reduction of 10% would be sufficient and should enable us to cover the period to 30th June, 1953, and I should like authority to agree to this rate of reduction if it is necessary to do so.

If it appeared that we were in danger of a larger cut being forced upon us, I would immediately consult those of my colleagues who are directly concerned, and if there was disagreement between us, bring the matter before the Cabinet again.

Foreign Office, S.W.1.

14th MAY, 1952.

A.E.