DIEGO GARCIA AND THE RAPID DEPLOYMENT FORCE

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1. An Anglo/American agreement on the availability of the islands of the British Indian Ocean Territory for defence purposes for an initial period of 50 years was concluded in 1966. Under a subsequent agreement of 1972, superseded by an agreement of 1976, the United States established a communications and naval support facility on the island of Diego Garcia, the largest and most southerly of the Chagos. The facilities include an anchorage, an airfield, a fuelling pier, berthing space, fuel and ammunition storage and accommodation. There are some 2,000 US service personnel on the island but no permanently stationed combat units, warships or aircraft. There are also pre-positioned ships holding stores and equipment for the use of the Rapid Deployment Force if sent to the area. A Royal Navy detach- ment under a Lieutenant Commander administers the island on behalf of HMG. Last year we agreed to US proposals for the expansion of the existing facilities on the island.

2.

The island's facilities are intended to support the higher level of US military deployments mainly naval - in the region that has followed the Soviet invasion of Afghanistan. In addition Diego Garcia fulfils a key 'over the horizon' role in facilitating the rapid deployment of US forces into the Middle East or South West Asia in the event of a crisis.

3. In this role Diego Garcia offers important advantages over other US facilities around the region, notably in that the presence of the facility imposes no political strain on a host government. eyes it contributes to the continuing stability of a region where the West's vital interests, above all oil, can quickly be threatened. The development of Diego Garcia offers reassurance to those regional states that may wish, in extreme circumstances, to look to the United States and other Western allies for material help to protect their interests. It poses no threat to any regional state.

!HKG 025/2

26 MAR 1981

OFFICER

PA

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