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Non-NATO and Mediterranean Commitments

24.

In considering our commitments outside the NATO area, but including the Mediterranean (which the Critical Level approach excludes) we must be guided primarily by political considerations including our interest in the stability of areas important tp us; our obligations to dependent territories; the need to preserve intelligence

gathering facilities in certain places. Some of our commitment s falling to be judged under these heads are in the Mediterranean and are of concern to NATO. Some of our intelligence centres outside the NATO area are of particular importance to the Americans with whom we enjoy a unique intelligence relationship from which we derive disproportionate

benefit.

25. The annual cost of our commitments in the Mediterreanean and

outside the NATO area is some AM150. The Steering Committee cannot recommend the total abandonment of these commitments, but we consider

that substantial reductions can be made.

26. Hong Kong So long as Hong Kong itself remains a British colony we shall need to retain a garrison there to act in support of internal security and to maintain the public confidence without which the Colony would become ungovernable. The military advice is that the garrison could not be reduced substantially below its present level: the Army could however be reduced from 6 major units to 5, including Gurkhas; naval forces could be cut to five patrol craft and communications staff; the Royal Air Force presence could consist of eight helicopters plus intelligence, communications and support facilities; and there would be no standing arrangements for reinforce- ment of the garrison. The only way in which the cost to the United Kingdom can be significantly reduced is to persuade the Hong Kong Government (wo currently contribute £M2.4 and meet all the works costs) to accept greater financial responsibility. It must be our

firm purpose to get Hong Kong to meet all or nearly all of the costs. The current financial arrangements expire in 1976.

27. Brunei : The Gurkha battalion stationed in Brunei is paid for by the Sultan and therefore costs us virtually nothing. It provides a potential reinforcement for Hong Kong and its departure would also deprive the Hong Kong garrison of a training outlet, including

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it will be HK's fine purpose not to do this ; as there will be amolla.

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