TNAG-0212-FCO40-248-Departmental-briefs-on-Hong-Kong-1970 — Page 138

Is an internal briefing file

ANS.

4.5.70.

Wick

Covering

bara Beck &

LORD CHALFONT'S TALK TO STUDENTS OF THE U.S. NAZIONAL FAR COLLEGE ON L. HAI 19770

BACKGROUND NOTE

East of Suez: South East Asia

Additionel background is contained in the transcript of the

Defence Secretary's precs briefing on 10 April, text attached.

Ald to Singapore and Malaysia

2.

in the

In 1968 the Governments of Malaysia and Singapore accepted

the offer of Special Aid (75 million) made by HIG to offset the

economic effects of our military withdrawal. It was calculated

that these affecte would be more severe in Singapore than in

Malaysia. In the former we shall discharge in the course of the

run-down around 25,000 local employees of our forces;

latter about a quarter of that figure. Fifty million pounds of

the Special Aid was offered to Singapore; and twenty five million pounds to Malaysia. The Government of both countries are free to

choose how the Special Aid shall be spent provided that seventy

five per cent of the funds are used on British goods and services.

If the Governments wish to use Special Aid for defence projecta.

then funds so spent are 100% tied to British goods and services.

The aid is being disbursed at the rate of £15 million a year over

a five year period.

3.

Re also undertook in 1968 to hand over military land,

installations, and associated equipment free of charge to the

/Governments