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Sone credible guarantee must be devised to bolster confidence. Singapore was different from Malta. It would be a challonge to see whothor a garrison town could survive when the garrison left. But they were determined to survivo; they were not ignorant or obtuse operators. The withdrawal should be presented not as a parting of the ways but as a partnership of a new kind leading to a new relationship. It should be a trading partnership but with SOLE evidence of Britain's continuing interest and Lilitary capability. was essential that British bankers should demonstrate continuing confidence since local bankers would take their cue from them.
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Mr. Loe said that the dismissals would mean some 22,000 - 25,000 families directly unemployed, apart from the effect on shopkeepers and others. The Government would be faced with a formidable problem; but he repeated that the koy-stone was the question of working cut ways and means of keeping up confidenco. It would mitigate the effects of the British Government's decisions if an announcement could be deferred until the ond of the year when the currency operation would be over. Time would be needed to consult and prepare.
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Mr. Healey said he would do his best to reflect lir. Lec's approach both in what he said publicly at press conferences and privately in further consultations. The Service Commanders themselves had only just been told of the new proposals and it would take some time before they had detailed proposals for how to proceed militarily. It should be easier to pay more attention to economic and local factors now that Confrontation was over and the forces were not engaged militarily. They would be identifying the most sensitive areas affected by the run-down.
15. Mr. Lee asked for a further meeting with Mr. Healey after his return from Kuala Lumpur; this was agreed. Mr. Lee thought that in the Leantime officials could explore areas whero contraction was to take place and assess the damage. There were certain principles which could be agreed in advance, for example that non-Singapore citizens, of whom there were some 9,000, should be discharged first. The next category to be discharged might be Singapore citizens who were born in India or Malaysia but whose families remained in those countries. He recognised that these criteria might present difficulties for the Servicos. 16. Mr. Healey thought it unlikely that planning would be sufficiently far advanced before he left for there to be a clear idea of the uajor options
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