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MINUTES OF EVIDENCE TAKEN BEFORE THE EXPENDITURE COMMITTEE

4 February, 1975.] Mr. A. P. HOCKADAY, C.B., C.M.G.,

Mr. T. CULLEN, Mr. D. M. EVANS, Mr. G. C. B. Dodds, and Rear Admiral A. S. MORTON.

the economic situation, a pretty big re- view carried out in 1974, would that be your view? That would be my view, Sir.

Mr. Roper.

46. It may be, on sections 5 and 6, that the witnesses cannot give us any answers at this stage, but what progress has been made in our discussions with our allies in the NATO Council and elsewhere, and have there been any points raised of a substantially critical nature?- -The discussions with our allies in NATO are very much in train at the moment. The technical position is that the military authorities of NATO have considered our proposals and have submitted a memorandum to the Defence Planning Committee which the Defence Planning Committee will be considering on Thursday of this week.

47. Is it unlikely that you will be able to tell this Sub-Committee anything more about NATO's view before the publication of the White Paper, or is it something we could raise with you again when you come before us to give us evidence next week?- -You would cer- tainly be able to raise it with us again. At this stage it is a little difficult to fore- cast how much we will be able to say, but we will try to help you as far as we

can.

Chairman.

48. What you have just said refers to the discussions the Secretary of State has had with our allies?- -Yes.

49. Have you been influenced by com- ments that have been made? There have been a great many in the different papers and magazines since the Secretary of State's statement. Would that be too fast a one?It would be premature to try to answer that question, Sir. There have been many comments both made to us in confidence by our allies and comments made publicly, either in Parliament or in the press, and the Gov- ernment will propose within the coming weeks between now and the publication of the White Paper to weigh all the various comments that have been made, both publicly and confidentially, and reach the decisions it will announce in the White Paper.

Mr. Roper.

[Continued.

50. On the question of the situation outside NATO, clearly the situation in Cyprus depends upon the special con- ditions now prevailing, but there were certain forces declared to CENTO based in Cyprus, particularly parts of the V- bomber force. Are the reductions in Cyprus primarily as far as those CENTO declarations are concerned?- The immediate reductions that we are making in Cyprus, which account for only part of our forces there, are mainly concen- trated on air forces and do, in fact, reflect the overcrowding that there is in the island as a result of the reinforce- ments that we have sent there since the crisis broke out last summer. The inten- tion is that air squadrons currently per- manently based in Cyprus will be with- drawn but will be replaced by elements sent there on rotation from the United Kingdom, and so long as we are con- tinuing to rotate through Cyprus forces identical with, or corresponding to, those declared to CENTO, their declaration to CENTO will continue.

51. Will the reduced requirements with the rotating rather than permanent forces in Cyprus require the maintenance of the two sovereign base areas?-We judge that in present circumstances there could be no justification for withdrawing from either sovereign base area.

52. Present circumstances are some- what peculiar. I was thinking of the longterm situation, assuming some poli- tical settlement in Cyprus and in light of what had been said about our longer term plans for a rotating force into Cyprus. Could Mr. Hockaday comment on that situation? -We should cer- tainly be likely to reconsider our re- quirement for each of the sovereign base areas in the light of the development of the situation. We do not regard any- thing as sacrosanct, but equally in the present very fluid state of the situation there, we are clear that in present cir- cumstances there could be no question of withdrawing from either.

53. In fact, one of the most useful defence facilities in Cyprus is outside the sovereign base area, I think, and that is the radar facility which is up on the top of Mount Olympus. Presumably that would be maintained, there is no likeli-

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