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open to them. The Commander-in-Chief agreed but said that they could certainly discuss tho principles to govern dismissals with the Ministry of Labour. He added a warning that the figure of 15,000 redundancies amongst locally enlisted personnel and locally employed civilians might be exceeded. lir. Healey said that all the figures he had mentioned should be treated as no more than a general indication. He thought that it might be the end of May before decisions were reached in London which would enable detailed planning work to proceed. He gavo it as his persona.. belief that the Government would not shift from the two broad objectives he had outlined. How these were announced was another matter. Mr. Lee had put his case with compelling force and he would certainly convey his reactions to his colleagues.

There was some discussion of what Mr. Healey should say to the press on departure. It was agreed to consider this further.

17.

18. It was also agreed that no publicity should be given to the fact-finding toan and that further consideration should be given to whether they should consult bankers and others not in Government service.

19. The futuro of the Naval Dockyard was briefly discussed. Mr. Lee said that Swan Hunter were preparing a plan for the civilian dockyard with a view to including the Naval Dockyard at a later stage. But in case this came to nothing, he was also in touch with a Norwegian firm and a Japanese firm (Mitsubishi) who were very interested.

Distribution:-

P.S. to Secretary of State for Defence (3)

B.H.C. Singapore, Canberra, Kuala Lumpur and Wellington

H.M. Mmbassador Washington

POLAD, Singapore

Mr. J.O. Moreton, Commonwealth Office (4)

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