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relations with Iran and Saudi Arabia, we should consult with them at an early stage. We should also consult with the United States well in advance, particularly in view of the growing US interest in the Southern Arabian peninsula and the Indian Ocean.
52. So far as the provision of loan personnel to the Sultan's forces is concerned, this is paid for in full by the Sultan, and extra costs are charged for all the direct assistance given. Omanisation of the Sultan's forces over the next seven years should permit the progressive reduction of the number of British loan personnel. Efforts might be made to speed up this process, and perhaps to replace some loaned officers by contract officers. 53. Our other contribution to the Sultan's war against the insurgents in Dhofar is the defence of the airfield at Salalah, and it is this commitment which accounts for most of our military expenditure in Oman. This commitment is related to our use of the Masirah staging post. If in the light of decisions on the Far East, Masirah were no longer required, extricating ourselves from Masirah and Salalah would require careful handling. Arrangements would need to be made
1)
ii)
iii)
to compensate the Sultan for the loss of expected rent and the cost of defending Salalah (we would also have a moral obligation to offer extra Loan Service Personnel until the Omanis could defend it themselves).
to allow for the resettlement of the population of Masirah (3,000) who are solely dependent on the RAF for their livelihood. to allow the BBC Relay Station and the monitoring facilities to continue.
Our fixed assets are not a bargaining factor without RAF Masirah ODA economists see no future for the island in developmental terms but they might sugar the pill of our departure if they were transferred as going concerns to the Oman Government.
54. The timing is complicated by the recent Omani request for us to accept Iranian Phantom aircraft on Masirah for about a year; and the fact that the Omanis are about to spend large sums on infrastructure development to improve the conditions of the people employed by RAF Masirah. Consultation should therefore take place as soon as possible.
/The Gulf
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