working out the new political arrangements which will replace the Anglo/ Malaysian Defence Agreement. A meeting of Ministers of the five Govern- ments is proposed for next year.
10. It is planned that the British contribution, which has been broadly designed to complement the forces of the other four Governments, will comprise: Five frigates or destroyers on station East of Suez (including Hong
Kong).
A British battalion group, including an air platoon and an artillery
battery.
A detachment of Nimrod long-range maritime reconnaissance aircraft.
A number of Whirlwind helicopters.
The provision of a submarine is also being considered. There will also be a considerable number of visits by combat units of all three Services for jungle, air and maritime training and exercises in the area.
11. The annual extra cost of deploying these forces in South East Asia is likely to be between £5m. and £10m. (budgetary and overseas expenditure). A more precise estimate cannot be made until further studies and consultation, relating for example to possible joint support arrangements with the forces of the other Commonwealth partners, have been completed. The effects on NATO force declarations will be small; they will be the subject of consultation with NATO.
ROYAL NAVY
12. The plan of the previous Administration to phase out the fixed-wing aircraft carriers in 1972 would have created a most serious gap in the capability of the Fleet. The Government will reduce that gap in two ways:
(1) the strike capability of surface ships will be improved by introducing as soon as possible a surface-launched anti-ship guided-missile system, Exocet;
(2) H.M.S. Ark Royal will be retained until the late 1970s.
Anti-Ship Guided-Weapon Systems
13. The French Exocet missile system is in an advanced stage of develop- ment. Negotiations have started with the French Government with a view to establishing an Anglo/French collaborative programme. Subject to their satisfactory conclusion, it is intended that the Exocet system should be widely fitted in surface ships during the 1970s.
14. Studies continue on other means of enhancing the capability of the Fleet against surface ships, including submarine-launched anti-ship missile systems.
Aircraft Carriers
15. Two fixed-wing aircraft carriers remain in commission in the Royal Navy: H.M.S. Ark Royal and H.M.S. Eagle. The Government has decided to retain H.M.S. Ark Royal and to run her on as a fixed-wing aircraft carrier until the late 1970s. By then improved weapon systems planned for the Fleet
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