SECRET UK EYES A

and the restoration of US MAP cuts to the BDF has done much to

ensure that our mutual support of this organisation will

ntinue.

AUSTRALIA AND PACIFIC REGION

32.

During the Prime Minister's visit to Australia for the 1988

Bicentennial Celebrations she emphasised Australia's strategic importance to the UK as a friendly, like-minded country situated in the fast-growing development area of the Pacific Rim and well

placed to preserve stability and advance democracy in the

Pacific. Following her visit the PM instructed government

departments, including the MOD, to give greater priority to

bilateral links with Australia. During 1989, therefore, MODUK progressed relationships on all fronts. HQBF Hong Kong and

HQUKLF conducted reciprocal training exercises, the levels of

individual personnel exchanges under the LONG LOOK/SEA

SURGE/AIRWAVE programme continued unabated and the UK provided

more than 30 umpires for Exercise KANGAROO, Australia's largest deployment exercise since 1945. Cooperation was developed over

coordinated participation in the programme of FPDA exercises and

the Chiefs of Defence of both New Zealand and Australia visited

UK in November to attend the BRITANZ talks. Closer military

relations with New Zealand are still constrained by Wellington's

anti-nuclear defence policies and, although New Zealand offered to host the annual Exercise FINCASTLE MPA competition next year, it was finally decided that Canada would do so with the hope

that an accommodation will be reached which will permit the use

of a New Zealand venue in 1991. This year HQBF Hong Kong units

took part in New Zealand's intervention scenario Ex GOLDEN FLEECE

and the New Zealand forces expressed willingness to coordinate

their plans for FPDA exercise participation with those of the UK.

VCDS visited both Australia and New Zealand in October and

briefed senior staffs of both nations on the reorgansation of

MODUK which both countries are using as a model for the

reorganisation of their own Ministries. It is thought unlikely that the constraints being placed on New Zealand by the USA and

UK will result in revision of her anti-nuclear policies in the

near term. In the meantime, we are endeavouring to conduct

SECRET UK EYES A

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