16.

1. We propose however to make substantial reductions in the

level of our forces in Cyprus, and will consider their long-

term future in relation to political developments in the

Republic, in consultation with our allies.

17.

.22 Our Military Facilities Agreement with the Government of

Malta provides for the stationing of some British forces in

the island until its expiry in April 1979.

We shall respect

this.

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23.

There will be no change in our present dispositions in

Gibraltar, Belize or the Falkland Islands for as long as they are

necessary.

24. We propose to make some economies in the Hong Kong garrison

and shall seek larger contribution to its cost from the

Hong Kong Government.

20. We propose no longer to station naval forces permanently in

the Caribbean but shall in future provide any necessary

assistance to the Associated States and dependent territories

there from our NATO forces in the Eastern Atlantic.

8

CONFIDENTIAL

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