CONFIDENTIAL

Heads of:

SAMD

Defence Dept

ECD (E)

ERD

UND

SED

HKGD

WIAD

EAD

MCAD

NAD

FED

SAFD

NENAD

Director of Resturch

Mr CAVEC

ольс Cabinet Office

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AII AUSS

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THE INTERNATIONAL IMPLICATIONS OF THE FALKLANDS CRISIS

I attach a first draft of a paper attempting a first review of this enormous subject. The idea is that it should be discussed at the discussion meeting of FCO Ministers at Chevening on 8/9 July.

1.

I should be grateful for comments by close of play on Thursday 24 June.

2.

3.

Please could Defence Department add a paragraph in the place indicated about the defence policy implications of defending the Falkland Islands. Defence Department may also wish to consider carefully whether the draft deals appropriately with the implications of the crisis for our wider defence policies. This is a big subject in itself. It cannot be ignored in the present paper. But Defence Department might prefer to treat it in a rather different way: by saying whether there may be attempts to argue for new priorities in defence policy and what positions the FCO should take, on the basis of foreign policy priorities, in such a debate.

4. SED will wish to update the section on Gibraltar.

Lithalaty

CLG Mallaby

Planning Staff

77

21 June 1982

CONFIDENTIAL

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