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SECRET UK EYES A

UK EYES A

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favourable to the UK than 50% at the start and 75% preferably by the end of a five year agreement but spread over seven years as a fall-back position. Within these guidelines officials should be empowered to reach the most advantageous settlement possible. The Foreign and Commonwealth Office and Treasury have been consulted at official level, and concur.

Recommendation

6.

Unless you or other members of OPD see any objections, I do not think it necessary to discuss this matter in Committee. I should accordingly be grateful to know by 14th July whether you and our other colleagues agree that we should proceed along the following lines:

7.

8.

b.

That the reduced garrison described at paragraph 3 should be accepted as the basis for the Cost Agreement negotiations.

That our negotiating aims and tactics should be as described in paragraph 5 above.

I am sending copies of this minute to members of OPD and to Sir John Hunt.

R.M.

8th July 1975

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UK EYES A

UK EYES A

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