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Copy No.12 of 15 copies
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Record of conversation between the Secretary of State for Defence and the Singapore Prime Minister at Singapore on Monday, 24 April, 1967
FAR EAST FORCES REDUCTIONS
Present:
Mr. Lee Kuan Yew
Dr. Goh Keng Swee Mr. G.E. Bogaars
Mr. Sim Kee Boon
Mr. Tay Seow Huah
The Rt. Hon. Denis Healey Mr. J.V. Rob
General Sir Michael Carver Admiral Sir Desmond Droyor Mr. F. Coopor
Mr. J.O. Moroton
Mr. P.D. Nairne
Mr. Healoy said that the onding of confrontation and domestic economic considerations had lod the Governmont to envisago a faster run-down of forces in the Far East than had been expected a year ago. It was necessary to make substantial savings in both foreign exchange and budgetary expenditure and this roquired far reaching decisions on the futuro size and organisation of the forces. So far no firm decisions had been taken but the Government had made cortain planning assumptions which had been discussed by the Foreign Secretary in Washington with representatives of the Australian, Now Zealand and United Statos Governments and which he himself had now come to discuss with the Prime Ministers of Singapore and Malaysia. The Cabinet would take final decisions in July.
2. Mr. Healoy explained that the Government's objective was to reduce attributable defence expenditure in the Far East (excluding Hong Kong) by half by 1970/71. So far as it had been possible to assess the local consequences, it looked as if this could mean a loss to the Singapore budget of about £10 million out of the £56 million at present spent by the British Sorvices in Singapore. In terms of manpower it would mean a reduction of about a half both in the British Services and in those employed by them, i.c. a loss of about 15,000 jobs amongst locally enlisted personnel and locally employed civilians. The Government recognised that this would impose a considerable strain on the Singapore economy and wanted to do all they could to ensure that the transitior
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