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33. Furthermore, if we assume that we would wish to withdraw in an orderly manner and not be responsible for political chaos in Singapore resulting from too rapid rundown, since chaos there would have repercussions on the stability of the whole area, then the practical limitations on the speed of our withdrawal are much more severe. Unless we carry the Singapore authorities with us they could severely embarrass our withdrawal. On the basis of Study No. 7 some 16-18,000 local employees of the Services

would be declared redundant in Singapore alone. Without taking into

account those privately employed, this would mean that more than a half

of those now directly employed by the Services would be without jobs. Quite apart from this rundown, present trends in unemployment would result

in 17 per cent of the rapidly rising labour force being jobless by 1970.

There is bound to be great pressure therefore to spread these redundancies

over the longest possible period. A fortiori, pressure to spread the much greater redundancies resulting from complete withdrawal would be even

more intense. The economic effects on Singapore are being examined, with

the implications for our economic aid. These are very great and need

to be fully assessed and our policy on remedial aid considered before we

get into substantive consultations with Singapore.

34. Another practical limitation to the speed at which a minimum

presence could be established in Australia is that some facilities would

need to be developed, though primarily of an order which the Australians

are likely in any event to require. Discussions with the Australians on

the precise nature of the facilities, and their construction, together with

the subsequent deployment of our forces, would take some years.

Summary on Complete Withdrawal from Singapore and Malaysia

35. If weight is given both to these longer term considerations, and above all to the practical limitations set out in paragraphs 32-34,

in the next two or three years the dinstinction between the initial

stages of a gradual reduction of our forces and those of complete withdrawal from Malaysia and Singapore may prove in practice not to be substantial. The Singapore Government have taken as their own assumption

that a British military presence at pre-Confrontation strength would

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