CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 118

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In discussion it was pointed out that success had been achieved in attaining the previous target for defence expenditure of £2,000 million by 1969-70 at 1964 prices, even taking into account the recent increases of

pay for the armed forces, as early as 1965-66, and maintaining a somewhat lower expenditure in 1966-67 and 1967-68. It was urged that in consider-

ing further reductions we should take into account the fact that the

capability of our forces in Germany was already inadequate to meet their

tasks; and that the stationing of forces in Australia which was

contemplated was admittedly largely for political reasons. While it was

necessary to achieve a reduction in our forces to a level which was within

the capacity of the economy to bear, serious damage was being done to cur

interests in Europe, Africa and Asia by a reduction of forces which was incompatible with the military tasks which were involved. By this course and still more by proposing further reductions we were denying ourselves

any influence in the course of events in these areas,

•

On the other hand, there was general agreement in the Committee that

the basis of the current proposals was that our military commitments should

be reduced to a level which was within the military capacity of our forces

and that in the nature of defence policy it was appropriate that our military

posture should be governed by political objectives. In these circumstances,

there was a wide measure of support for the proposals put forward by the Defence Secretary. It was, however, suggested that the adoption of these proposals as the basis of discussions during the forthcoming months with our

allies would effectively preclude the possibility of the Government later

taking a decision to withdraw wholly from the Far East and to maintain no

military presence in Australia. A study of this course had been

commissioned by the Committee in its initial discussion of the range to be

covered by the further defence studies and it was desirable that this

alternative course should be fully considered, on the basis of a detailed

appreciation of its implications, before a final decision was taken.

the other hand, it was urged that this country was bound in honour to give

military support to Australia and New Zealand if they were attacked. Our

obligations to do so did not derive solely from a series of recent

Ministerial statements, including statements made with the full collective

approval of their colleagues by members of the present Administration.

While those statements must in any event be honoured, our obligations

derived from the whole course of British history over the last fifty years

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