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In further discussion it was noted that the withdrawal of the
Shackleton aircraft from Malta was not part of the defence reductions and
would proceed irrespective of the reductions planned in the defence review, which on present plans were to begin in May.
Summing up the discussion, THE PRIME MINISTER said that the Committee
agreed that instructions should go to our High Commissioner in Malta to
invite Dr. Olivier to London for further negotiations on our proposals to
reduce our forces in Malta. It should be a precondition of the negotiations
that the Maltese discontinued legislation to repeal their Visiting Forces Act
and ceased the present harassment of our forces; they should also agree not to press their arguments that our reduction of forces et constituteda
breach of the Anglo-Malta Defence Agreement. For our part we should lay
emphasis on ways of helping Malta to meet the economic consequences of the
rundown: our discussions should include the industrial Commission, the
Development Corporation, the dry dock and the free port and it would be an
essential part of any agreement that the Maltese Government should nationalise
the dockyard. Additionally we should offer to discuss the rephasing of the
rundown within the four year period. The details of our offer should be
prepared by a working party of officials under Cabinet Office auspices.
Emphasis might be placed on the economic aspects of the negotiations by
associating the Minister of Overseas Development with them as well as the Minister of State for Commonwealth Affairs (in the absence of the Commonwealth Secretary on his overseas tour). He would himself be prepared
to have an initial and concluding discussion with Dr. Olivier, and for this
reason it would be convenient if Dr. Olivier could be invited to London in
the week beginning 20th February.
The Committee
(1)
Invited the Commonwealth Secretary to instruct the High Commissioner in Malta to invite Dr. Olivier to discussions ₫n the United Kingdom reductions, on the lines indicated by the Prime Minister in his summing up.
(2) Took note that the Prime Minister would arrange for
a working party of officials to study the details of the proposals to be put forward in these discussions.
Cabinet Office, S.W.1.
7th February 1967
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