TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 119

before the end of November or early December.

(The present

position is that the Senate and the House of Representatives

have agreed on a reduced estimate for 1975 expenditure on

Diego Garcia of approximately $18 million and the Administration

are working to clear up the remaining Congressional procedural

obstacles.)

9.

However, we shall undoubtedly be pressed during the

Defence Review consultations to make our intentions about

Diego Garcia clear and in the context of our withdrawals

elsewhere in the area it is important that we should do so.

The form and content of any announcement will need to be jointly

agreed. We would seek American co-operation in linking it

to a statement on arms limitation in the Indian Ocean area,

though we cannot assume this would be forthcoming.

SECRET