8.
I was glad to see from recent announcements that Australia
and New Zealand will be keeping military forces in Malaysia and
Singapore after 1971, and that they will be meeting again this
summer with these two countries to concert arrangements for
We shall defence cooperation in the area after our withdrawal.
also be taking part in that conference, not only because we are the ones who are handing over responsibilities, but because we
shall retain a strong interest in the peace and stability of
the area after 1971. We shall keep a general capability to
deploy forces to the area if in our judgement circumstances
require it and we shall continue to train and exercise there
regularly to ensure that we have the right military skills to
enable us to do this. We are taking part in a large five power
exercise in the area next year to demonstrate, among other
things, our ability to send sizeable reinforcements from Europe.
We are doing what we can to help Malaysia and Singapore build
up their military forces by the loan of personnel, training,
advice and supply of equipment. We are giving these two
countries £75m. in special aid to compensate for the economic
effects of our withdrawal as well as handing over a large number
of military installations free of charge. We shall of course
continue to have a strong interest in trade and in investment
in the area. Although after 1971 we shall no longer have
forces declared to SEATO plans we shall continue to play a
part in SEATO activities, particularly in the economic sphere.
9. In the Far East there is the problem of China with its
population of 700 millions, growing at the rate of 20 millions
a year. The country is about to emerge from its self-imposed
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