TOP SECRET
The studies set out as (a) and (b) above should inter alia indicate the likely consequences (and the extent to which the consequences would be different in the two cases) in terms of: world-wide political implications (with particular reference to the Chinese threat); implications for our relations with Malaysia, Singapore, the United States, Australia and New Zealand; economic implications (especially in respect of aid); and implications for our dependent territories.
A further study should cover the implications of withdrawals as set out in (a) and (b) above for our interests and responsibilities in Hong Kong, with special reference to our trade, to the territory's importance vis-a-vis China and to the extent and timing of the weakening of our position as our lease of
the New Territories draws near its term.
ADDITIONAL STUDY ON EUROPE
(14) To examine the implications of the possible reduction of our forces in Europe by one-third for our policy of joining the European Economic Community upon appropriate conditions.
(97793)
(4)
TOP SECRET