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be necessary both on the timing of the disbandment and on minimising the damage which the consequent reduction in foreign exchange income would cause to the Nepal economy. The Nepal Government would be unlikely to object on political grounds but they have based their plans on the continuing income from the Gurkhas for some time ahead and would certainly claim that there was a moral responsibility on the United Kingdom to ensure, through the aid programme, that Nepal did not suffer economically as a consequence of Gurkha disbandment at the initiative of HMG.
16. The consultations could only begin once a decision in principle
had been reached.
FIVE POWER DEFENCE ARRANGEMENTS
17.
(a)
(b)
There are two aspects to the Five Power Defence Arrangements:
The Consultative commitment on the defence of Malaysia and Singapore.
The forces which HMG maintain in the area to support the arrangements. (The battalion and supporting units in
Singapore, the contribution to the Integrated Air Defence System, and naval forces under the group operating system.) The Governments of Singapore and New Zealand have made clear the importance they attach to the maintenance of British forces in South-East Asia, and Malaysia (and probably Australia) are likely to attach importance to our at least continuing in the Integrated Air Defence System.
18. The FPDA, and specifically the commitment to consult in relation to threats to Malaysia and Singapore, was not intended as a response to any defined military threat, but as a political reassurance to our Commonwealth partners and to support confidence and stability in the area. It has been generally understood that the need for the arrangements would not last for ever. Their value has also to some extent depended on the continued willingness of Britain, Australia and New Zealand to station forces there while Malaysia and Singapore are developing their own armed forces. This has now been affected by the Australian decision to remove most of her ground forces. But the Australian contribution to the IADS continues and all governments still support the consultative
/commitment.
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