SECRET
PAPER NO 23. FLY SHEET.
THE BRITISH DEFENCE EFFORT OUTSIDE NATO: THE SCOPE FOR ECONOMIES: DIEGO GARCIA
THE DEFENCE REVIEW
80m
1. The Defence and Oversea Policy Committee has concluded that, although our defence commitments outside NATO can in some cases be abandoned or reduced, a number must be retained for political reasons. Details are set out below. The cost has been estimated at £70 a year, but this would be substantially reduced if it were possible, as DOPC have agreed would be their preferred course, to withdraw all our forces from Cyprus and to persuade the Hong Kong Government to contribute not less than three quarters of the cost of the Hong Kong garrison. It has been recommended to the Committee that the cost of these commitments should be additional to any cost involved in the Critical Level for our NATO commitments and defence of the UK (see Paper No 22). Negotiating briefs for eventual consultations with allied Governments are being prepared on this basis on the Prime Minister's instructions.
2.
Because of reservations by the Chancellor of the Exchequer, officials are conducting further studies for submission to DOPC on the implications of containing this cost within the Critical Level.
The Prime Minister intends that the Committee should decide, as soon as possible after the Election, what final recommendations to make to Cabinet.
HONG KONG
3
The present level of forces should be slightly reduced; the reinforcement capability should be given up; and the Hong Kong Government should be pressed to pay 75% of the cost in future. The total cost of the forces, including the Hong Kong contribution, is then likely to be about £34m.
FIVE POWER DEFENCE ARRANGEMENTS
20
We should maintain the consultative commitment and be
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