CONFIDENTIAL

CONE IDENTINA),

by 1979 and we will no longer permanently station Vulcans, on

Cyprus.

42.

Discussions with the South African Government about the

termination of the Simonstown Agreement are likely to begin

shortly_7.

43. The permanent deployment of two frigates to the West Indies

will cease in 1970, and the Senior Naval Officer, West Indies,

will be withdrawn.

44. The implications of these reductions for the manpower and

equipment plans of the three Services, the Research and Development

(R & D) programme and for the defence industries are described

in the following paragraphs.

I-20

CONFIDENTIAL

CONFIDENTIAL

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