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b.
C.
colleagues separately on this subject.
The measures
The Americans have pressed us strongly to remain
in Cyprus, and we have told them that in present
circumstances we will do so, though at reduced
strength. I propose, as an interim arrangement,
to reduce our level of expenditure in Cyprus to
roughly one-third of its present level during the
course of the coming financial year.
we take thereafter will depend both on the progress
of political developments in the island, and on the
outcome of our discussions with the Americans,
which are continuing.7 A separate report to the
Committee on the Cyprus negotiations will be made
in due course.
We should not make any changes in our military
presence in Oman which could jeopardise the political
stability of the area. Although we aim to withdraw
our direct assistance to the Sultan eventually, this
must be a gradual process related to his continued
success against the rebels in Dhofar.
Although we
shall reduce our expenditure in Masirah, as the
demand on it as a staging post declines, it would
be premature to talk publicly of closing it since
this would inevitably raise doubts in the minds of
the Sultan and others about our willingness to
continue supporting him. Moreover, the Americans
have expressed concern on this latter point.
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golden
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