Dominions, and it was only on that basis that we agreed to the
transfer of sovereignty to Malaysia in 1963.
15. The conflict in Vietnam may we hope be drawing, although
slowly and painfully, to a close; thereafter the security of
the area should depend chiefly upon mutual regional cooperation
underpinned by the resources of the free world.
16. In the Persian Gulf we are hopeful that the states
concerned will during the period before our last forces are
withdrawn have concerted with one another adequate arrangements
for their own defence.
17. The most immediate anxiety is in the Middle East and
arises not from our announced withdrawal from bases East of
Suez but from the failure as yet to find any basis for peace
between Israel and its Arab neighbours.
18. In the Mediterranean several matters arise, the increased
Soviet Naval presence, the failure as yet of the two communities
in Cyprus to reach an agreed and viable settlement and the
Spanish claims to Gibraltar.
19. We are naturally concerned at the increase in the Soviet
Naval presence in the Mediterranean and believe that this has
added to tension in the area. The members of the North Atlantic
Alliance naturally have an interest in the area and are watching
the situation closely. Our policies in the Mediterranean area
should be aimed at promoting improvements in living standards
in the area as well as working in full conjunction with the
United Nations regarding the current crisis in the Middle East.
I should, while talking of the Mediterranean, like to refer to
the special relationship existing between Malta and the Alliance.
7