2.

MALTA

SECRET

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SECRET

(Previous Reference: OPD(66) 41st Meeting, Item 5)

THE COMMONWEALTH SECRETARY recalled that at an earlier meeting the

Committee had agreed that the reduction of our forces and facilities in Malta

in accordance with the Defence Review should be modified in the light of the

representations made by the Maltese Government about the disastrous effect of

these reductions on the Maltese economy. The Committee had agreed that an

alleviation could best be made by offering to defer the withdrawal of the two

battalions for two years after 1968 and to retain the Canberra squadron in Melta for six months after the date originally envisaged. The Committee had,

however, taken the view that in negotiation we should seek to get agreement on

something less than these modifications in respect of the battalions and the

Canberra squadron, such as a commitment only to keep one battalion for the full two years and possibly to keep to the original timetable for the removal of the Canberra squadron.

After further consideration of the tactics to be adopted in negotiation

the officials of all the Departments concerned took the view that it would be

disadvantageous to start the further consultations which were due to begin the

following week by offering less than the full modifications which the Governmen

were prepared to accept. Once we had revealed to the Maltese Government that

we had tabled less than our final offer the process of negotiation would be

seriously protracted with the risk therefore of deferring some of the savings

which we must obtain in respect of the other reductions of our forces and

facilities. We should therefore offer at the outset of the resumed

consultations the maximum alleviation which had already been agreed by Minister

and make it clear that in no circumstances were we prepared to go further.

Discussion showed general agreement with the Commonwealth Secretary's

proposal.

The Committee

Agreed that the Commonwealth Secretary should offer at the outset

of the forthcoming resumed consultations with the Maltese Government the maximum alleviation of the reduction of our forces and facilities in Malta which had already been agreed in principle. These involved the following changes in the level of forces and facilities in Malta agreed in the Defence Review

(a) The withdrawal of the two battalions should be deferred for

two years after 1968.

(b)

(c)

The Canberra squadron should remain in Malta for six months

after the date originally envisaged for its withdrawal.

The first regiment of the Royal Malta Artillery should be withdrawn from Germany in July 1968 and the Royal Malta Artillery as a whole should cease to be a United Kingdom responsibility from 1st October 1968.

Cabinet Office, S..1.

6th January 1967

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