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MALTA

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(Previous Reference: OPD(67) 4th Meeting, Item 1)

THE CHANCELLOR OF THE EXCHEQUER said that, at the Prime Minister's request, he had the previous evening discussed with the Commonwealth

Secretary and Defence Secretary their proposal that instructions should

be sent to the newly arrived United Kingdom High Commissioner in Malta

authorising him to propose to the Maltese Prime Minister, Dr. Borg Olivier,

negotiations on a series of proposals for resolving the present situation

in Malta. It was envisaged that these would include measures for mitigating

the effects on the Maltese economy but also some rephasing of our run

down of forces within the planned four year period. Part of the

agreement would be that the Maltese should discontinue legislative action to repeal their Visiting Forces Act (which governed the status and privileges of our forces in Malta) and should cease the present

harassment of our forces. He was himself opposed to any negotiations on

the rephasing of the defence run down; partly on account of the political

consequences if Ministers were seen to make a fresh offer to the

Government of Malta after having placed before then, with the authority

of the Cabinet, proposals which were described as final, but nore

particularly because, see it would be obvious that any rephasing had

rogard more to local social and economic than to military considerations

AND and to our own requirements. Embarrassing repercussions in other areas

A where we planned to run down our forces, such as Cyprus, Aden and

Singapore, would be likely. He had therefore taken the view that the

question should be referred to the Committee for decision; if, however,

his colleagues were disposed to agree to an offer to the Government of

Malta on the lines proposed by the Defence and Commonwealth Secretaries

he would not wish to press the matter further.

THE DEFENCE SECRETARY said that, with some reluctance, he supported

the making of an offer to Dr. Olivier which would include a rophasing of

the run down of our forces. It was a principle of the defence review

that withdrawals of our forces should be orderly; and the situation in

Malta was now such that there was a real risk of a far from orderly

withdrawal. If the Maltese legislature passed on Wednesday the Bill to

repeal the Visiting Forces Act, there might well be a general strike and

other developments that would make it impossible for our forces to stay

in the island. If it became clear that Maltese labour was being withdrawn

we should have to send out to Malta specialist servicemen to replace the

withdrawn labour and possibly a further infantry battalion for internal

security duties. There would be a risk of our being involved in using a

measure of force, e.g. at road blocks, in order to secure our withdrawal,

and we might well have to leave behind very substantial defence stores.

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