CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 38

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CONFIDENTIAL

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2. STATEMENT ON DEFENCE ESTIMATES 1967 (Previous Reference: OPD(67) 3rd Meeting,

CONFIDENTIAL

POLICY AND PLANNING SECTIONS

Minute 2)

The Committee resumed their discussion of the draft policy and

planning section for the Statement on Defence Estimates 1967 and

considered a memorandum by the Secretary of State for Defence (OPD(67) 3 (Revise)) covering a revision of this section.

THE DEFENCE SECRETARY said that he had revised Chapter I of the 1967

Statement on Defence Estimates to take account of the points made by the

Committee on the earlier draft. There were two main changes: firstly,

paragraph 4 of the draft now indicated that, because of the financial

difficulties in meeting the foreign exchange costs of our forces in

Germany, we were being compelled to re-examine our world-wide military

deployment. Secondly, the section of the chapter dealing with the review of North Atlantic Treaty Organisation (NATO) strategy had been

considerably shortened. In particular the clear cut references in it to

our dependence on nuclear escalation had been eliminated. The section

did not now go beyond what had been said in the Statements on Defence for

1964 and 1965. In addition he had made a number of minor amendments to

take account of the suggestions made since the Committee last discussed the chapter.

In discussion the Committee first considered the problems which

would be raised by indicating in the White Paper that a further review of

our world-wide deployment was in hand. Although it was recognised that

this might alarm our friends and allies, who had been given no warning of

the studies that we were undertaking, it was agreed that it was essential

to provide in the White Paper the necessary background to decisions that

might have to be taken later this year. If this were not done these

decisions would appear to have been taken under pressure and not as a

considered policy. Paragraph 4 of the chapter, which dealt with the

point, should however be recast. It should begin by saying that the

Defence Review was a continuing process for our deployment world-wide

which had to take account of the scope for savings on our balance of

payments and of our commitments to our allies. It could then lead on,

in the sense of the present draft, to the problems created for us by

difficulties in meeting the foreign exchange costs of our forces in

Germany and to the need for decisions on NATO strategy: and it should

conclude with a statement that we hoped to announce further plans later

this year.

CONFIDENTIAL

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