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SECRET
OPD MEETING, 19 FEBRUARY
Mr Mason's Memorandum on Defence Review Consultations
This item could in places involve simultaneous discussion of the related item on the draft Defence White Paper, Chapter I of which contains the Defence Review decisions.
Su
Mr Mason had hoped that the Secretary of State would co-sponsor his paper, because (i) Mr Callaghan has shared responsibility for the consultations and (ii) Mr Mason wanted the paper to make the point that it was political considerations and political con-
which precluded immediate withdrawal from Cyprus and Masirah. He invites further comment from the Secretary of State (paragraph 1). There is little in fact that Mr Callaghan need add and he can support the paper unreservedly.
siderations alone
Non-NATO Matters
Hong Kong (para, 3 (a)
A separate note on Hong Kong is attached.
Cyprus (paras 3(b), 18(a) and 18(b)
Current inter-departmental studies will conclude the t for political reasons we shall need to retain both SBAS and that the minimum forces required will cost about a third (£22 m) of what they cost before last year's crisis. Hence the proposal in para. 3(b) to reduce forces to this level during the coming financial year. The Committee is promised a further paper on Cyprus in due course.
Mr Mason and Mr Healey will probably both express concern that our continued presence in Cyprus may become
/permanent,
SECRET