U.S. defence secretary warns Britain over cutting military spending

LONDON, June 1 (Reuters) - United States defence secretary Ashton Carter urged Britain on Monday not to cut defence spending below agreed levels, saying that such a move would send a signal of "disengagement" in foreign affairs to the world.

Britain's newly elected Conservative government has yet to promise that it will maintain defence spending at the NATO-agreed level of 2 percent of national output, raising fears that, with spending cuts planned across government departments, the Ministry of Defence budget could fall.

Carter echoed other recent warnings from the U.S. over defence spending, urging Britain and other NATO countries to stick to the 2 percent pledge. He said Britain had always been able to "punch above its weight" in international affairs.

"I'd hate to see that go away because I think it's a great loss to the world when a country of that much history and standing  takes actions which seem to indicate disengagement. We need an engaged United Kingdom," he told the BBC.

According to NATO, only the United States, Britain and Greece met the 2 percent target last year, but British spending plans do not currently go beyond 2016.

Future (LSE: FUTR.L - news) defence spending is expected to be reviewed later this year. (Reporting by William James; editing by Stephen Addison)