TNAG-0055-FCO40-91-Defence-review-1977 — Page 13

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TOP SECRET

Mr. Trafford Smith

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If you would like to see the whole picture I suggest you read C(67)40 and 41 and CC(67)16th flagged on H. 10/13 Part B followed by CC(67)19th at Flag A on H.10/13 Part C. Thereafter you should see OPD(DR)(67) 20 at Flag B on Part B. This was

shown to Mr. Hall at the time and in the absence of yourself and Mr. Fairclough I discussed it with Sir A. Galsworthy and obtained his agreement to the passages in it relating to the Dependent Territories. After consideration by the Defence and Oversea Policy Official Committee this paper was circulated with a revised covering note to Ministers as OPD(67)26 (Flag Cat Part C). The relevant minutes of 0.P.D. are at Flag D. You should also see the minutes of OPD(67) 17th Mtg. at Flag E following the Foreign Secretary's consultations in Washington.

On Mr. Healey's return from his consultations in Singapore and Kuala Lumpur 0.P.D. are to consider a paper next Friday, the 5th, summarising the outcome of the consultations and recommending, inter alia :-

3.

(a) that there should be no announcement of our aim to withdraw from Malaysia and Singapore by 1975;

and

(b) that the Cabinet should be asked to

decide now in favour of a continuing capability in the Far East after our withdrawal from Malaysia and Singapore.

The intermediate target is a reduction of our force levels in Singapore and Malaysia by 50% by 1970/71. Planning assumptions giving guidance inter alia on the future of the Commonwealth Brigade and our future force declarations to SEATO will shortly be sent to the Commander-in-Chief, Far East, who will then draw up a detailed plan for these reductions. We would ensure that D.T.D. are kept fully informed of these plans at a suitably early stage.

4.

I should be grateful to have these papers back as soon as convenient as they are in constant use.

5. I am very ready to discuss this further with you if you so wish. Mr. Reed, Head of Far East and Pacific Department, will be glad to keep in touch with the Heads of Department concerned in D.T.D.

Johnowl

(J.0. Moreton)

3 May 1967

Copies to:

Mr. Walsh Atkins

Mr.Reed.

TOP SECRET