out in 1976.

Elsewhere we have concluded that substantial reductions

in our forces and defence facilities are both possible and necessary, but i

in particular cases we have had to bear in mind the possibility that our

withdrawal, particularly in the short term, might give rise to political

difficulties which would not be commensurate with the savings we would

achieve. We shall therefore discuss our proposals in detail with our

7

allies and partners before taking final decisions, recognising that the

timing and method of the changes we propose may be of particular importame..

6.

Subject to these provisos I wish to tell the House what we have

in mind.

}

We are not proposing any change in the military facilities

agreement concluded in 1972 with the Government of Malta which runs until

1979. We propose to withdraw from Cyprus the air squadrons permanently

stationed there. We intend to withdraw our forces stationed under

the Five Power Defence Agreement with the exception of a small group

which we propose to retain at the Integrated Air Defence Centre.

The consultative provisions of the Agreement would however remain in

force and it would certainly be our intention to maintain olose links

with the armed forces and defence authorities of our partners. We

would propose to withdraw from Brunei the Gurkha Battalion at present

stationed there. We would wind up the modest facilities which we have

in Gan and Mauritius. We do not think it would be right in present

circumstances to make any changes in the arrangements we have with the

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