Reference.

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SECRET

Mr Stuart, HKIOD (Separate copies)

Mr Hickman, SWPD

Mr Wright, MED

Mr Goodison, SEED

Mr Thomas, SWED

Mr Carless, Latin America Dept

Mr Cox, WIAD

Mr Preston, Caribbean Dept

Mr Chalmers, SAD

Mr Ewens, EAD

Mr Squire, SEAD

cc.

Mr Thomson

Mr Cable

Mr Jackson

Mr McLaren

Mr Westbrook

DEFENCE REVIEW

NON-NATO COMMITMENTS

1. Mr Jackson and I have discussed with Mr Hudson the consultation brief for the talks with the US on non-NATO commitments which were circulated with Mr Jackson's minute of 7 October. The position on each is as follows:

(a) Malta

The paragraph as redrafted by Mr Thomas was accepted by the Ministry of Defence.

(b) Gan

The Ministry of Defence propose to include the last two sentences of the first paragraph ("We may also need

is being considered") in the covering note to the brief which still has to be drafted and circulated.

(c) The Gulf

The Ministry of Defence accepted Mr Wright's redraft, but wanted to reinsert the sentence "The Omani Government pays their full cost, and there would be no economies to the UK in its discontinuing this arrangement" and the phrase "mainly at our own expense" in the second paragraph. They thought it wise to make this quite clear.

(a) Dependent Territories

Accepted as drafted.

(e) Hong Kong

Mr Stuart's redraft was accepted. The Ministry of Defence however wish to reinsert the sentence "it is the relinquishment of this capability coupled with our withdrawal from Singapore which will make the airfields and our logistic supply route Masirah and Gan redundant.

SECRET

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