Distribution:-

Coples to:-

(16939) Dd.897300 200m 9/72 G.W.B.Ltd. Gp.863 (17785) Dd.897533 400m 5/73 G.W.B.Ltd. Gp.863

CONFIDENTIAL

File No.

GIB AND GEN

OUTWARD

Department Drafted by

TELEGRAM

(Block Capitals)

J S CHAMPION

MA 68

el. Extn.

DESKBY

FOR

COMMS. DEPT.

(Date)

USE

Despatched

POSTBY..

(Time)

Z

Security Classification CONFIDENTIAL

Precedence

PREAMBLE

(Time of Origin)

Z(G.M.T.)

(Restrictive Prefix).............

(Caveat/

(Security Class...

CONFIDENTIAL...

Privacy Marking)

PERSONAL

(Codeword)

(Deskby)

TO...

(precedence)

GIBRALTAR (post)

Tel. NoPERSONAL

of

AND TO (precedence/post)

AND SAVING TO

REPEATED TO (for info)

SAVING TO (for info).

[TEXT]

XY 42

Z

My telegram no.

: DEFENCE REVIEW

1. Gibraltar is not mentioned specifically in the ministerial statement to be made on 3 December, although the latter emphasises our intention to contract our world- wide role, to concentrate on NATO, and to discard some of

our non-NATO commitments.

2.

The Review itself concludes that Gibraltar is no longer of any great military importance to us, although it has some value for NATO, but that if our current policy of sustaining it is to continue, a garrison and support of the dockyard will be necessary so long as there is no change in the attitudes of Spain and the Gibraltarians. The economies proposed in Gibraltar amount, therefore, to no more than a

small reduction in the numerical strength of the garrison,

with an estimated saving of £lm on the present recurrent defence cost of £14m pa.

1

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