Reference: Our Tel 213 Feb 7.?

Repeat London (Information).

UK PROPOSALS FOR REDUCING DEFENCE EXPENDITURES

At the private session of the Council on February 14 the UK Representative made a complete statement concerning the measures which his government were taking to reduce defence expenditures. This statement is being sent to you in our immediately following telegram.?

2. He said that this statement was being given at the WEU meeting which was being held at the same time. While the details of the proposals had been discussed informally with SACEUR during his recent [visit] to London, no formal approach to obtain his judgement of the effects on NATO defence had been made. He therefore suggested that the Council might wish to make such a formal approach in Ministerial session on February 26 at which time these proposals would be discussed in the light of SACEUR's military assessment.

3. It was the general feeling of the Council that this was a matter of the gravest concern and that the early date of the WEU Ministerial meeting required very rapid action on the part of NATO. While the Council normally processed all military matters through the Standing Group, it would be necessary in this instance to approach SACEUR direct in the interest of speed. This procedure was further justified in that 90 percent of the effect of the proposals would be felt in SACEUR's forces. Thus it was agreed that the Standing Group Representative should personally give SACEUR a copy of the statement with the Council's formal request for SACEUR to provide to the Council as quickly as possible his military assessment of the effects of these proposals.

4. In further discussing the procedure to be adopted the German Representative expressed the view that it would be very difficult for SACEUR to produce the full military impact in writing and that it would be very useful if SACEUR could present his views personally as well as to answer any questions of clarification. As several other representatives supported this proposal, it was therefore agreed that SACEUR would prepare his appraisal in writing and distribute it to all countries as soon as possible. The Standing Group Representative said that SACEUR had been working on this problem for some time and that it should be possible for him to produce his appraisal within one week's time. After this appraisal had been digested and before February 26, SACEUR would be invited to attend a Council meeting to be held either at SHAPE or the Palais de Chaillot, whichever is the most suitable, to clarify further and to amplify his paper.

5. Regarding publicity, the UK Representative said his government's position is not to announce any of the details of the proposals until full consultation had taken place in WEU and NATO. If any press enquiries were made they would simply state that the proposals have been placed before the WEU and NATO Councils where they were now under consideration. The Council then agreed to adhere to this statement and while admitting they were studying the details, not reveal them.

6. Thus the procedure will be for countries to study the UK statement and to coordinate these studies with SACEUR's paper when it is available. We will send this paper to you immediately it is received. We will then be able to put forth questions and comments at the Council meeting at which SACEUR will be present. We would, therefore, appreciate having your comments and guidance in time for this meeting.

[L.D.] WILGRESS