and the US attach importance as the financial and operational

penalties are too great. Further official level talks

about our proposed withdrawal are planned for mid February.

Brunoi. The first indications are that, as expected, the

Sultan will oppose the withdrawal of the Gurkha battalion.

He arrives in London for talks on 20 February.

Indian Ocean

.It

Gan. Mr Zaki was gently prepared during his visit to

London last November and took the news without apparent

surprise though he was naturally concerned about the economic

consequences. Detailed discussions about the phasing of the

rundown of Gan will take place as soon as possible..

5.

Mauritius. Sir Seewoosagur Ramgoolam came to London in December

and appeared fairly relaxed about our withdrawal but professed

A

concern at how to keep the Russians out. He has yet to state

whether he would like to retain the Defence Agreement.

Caribbean

}

6. There should be no problems about withdrawal of the two frigates and the reduction of SNOW!'s headquarters by 1 April 76,

and no objections have been raised to the proposals.

Oman

7. The Sultan was extremely appreciative of the proposal to

make in present circumstances no changes in the arrangomonts

we have with him. The US, to whom we disclosed our intention

to withdraw eventually from Masirah, strongly urged us to

reconsider this. They have recently been told wo think it right to continue to plan privately and without limiting our

freedom of action by telling anyone else, on withdrawal. whom we judge the circumstances will permit.

(

2

GROPED

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