NATIONAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A029600010010-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 16, 2016
• Document Release Date: February 22, 2005
• Sequence Number: 10
• Publication Date: December 6, 1976
• Content Type: REPORT

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NATIONAL INTELLIGENCE DAILY CABLE
Monday December 6, 1976 CI NIDC 76-284C
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
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NAt-innal Intelligence Daily Cable for Monday, December 6, 1976.
The NID Cable is for the purpose ot informing 25X1
senior otticials.
UK: Defense Spending Cuts
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IRAQ-USSR: Aircraft Deliveries
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UK: Defense Spending Cuts
//Political and economic pressures will. probably
lead to anot er reduction in British defense spending next
year.//
//As a condition for securing a $3.9 billion credit
rom the international Monetary Fund, the Labor government is
likely to agree among other things to make as yet unspecified
reductions in the budget deficit. In any overall reduction in
government spending, defense is certain to absorb its "fair"
share.//
1 //Left-wing Laborites will insist that the govern-
ment honor i s election pledge to bring British defense spend-
ing into line with that of France and West Germany. The UK cur-
rently spends about 5.5 percent of its gross national product
on defense, compared to 3.5 percent spent by France and 4 per-
cent by West Germany.//
//The left will find allies for its demands in all
sections o the party. Defense spending, one of the largest
items in the national budget, is an attractive and vulnerable
target in the cabinet battle going on over how to meet the
terms for an IMF loan. The heads of the major departments are
more likely to be preoccupied with fending off reductions in
their own budgets than with warding off further cuts in de-
fense.//
//Although there is vigorous ministerial resis-
tance to s arp cutbacks in public spending, the cabinet appar-
ently recognizes the need for some reductions in order to get
the IMF credit, as well as to improve chances for an interna-
tional guarantee for official sterling balances.//
//Lord Carrington, a senior Conservative Party
leader and order defense minister, recently warned the Labor
government that if the defense budget is cut further, Britain's
national security would be endangered. Carrington pledged an
all-out effort to oppose plans. for additional reductions.//
/The Labor government has cut military spending
our times since it returned to power in February 1974, and at
least one more cut seems unavoidable. Defense Secretary Mulley
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hopes the slash can be held to around $80 million, but the new
reductions could range up to $165 million for fiscal year 1977-
1978.
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IRAQ-USSR: Aircraft Deliveries
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//Iraq took delivery in late November of 20 So-
viet ~e? aircraft, including 12 SU-7/20 fighter-bombers, the
first aircraft of this type received from the USSR in more than
two years.//
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25X1 //Soviet aircraft deliveries are at record levels 25X1
in support of Ir mbitious air force expansion and modern-
ization program.
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