TNAG-0538-FCO40-633-Strength-of-garrison-in-Hong-Kong-1975 — Page 61

CONFIDENTIAL

b.

C.

The Americans have pressed us strongly to remain in

Cyprus, and we have told them that in present circumstances we will do so, though at reduced strength. I propose, as an interim arrangement, to reduce our level of

expenditure in Cyprus to roughly one-third of its present level during the course of the coming financial year.

The measurcos we take thereafter will depend both on the

progress of political developments in the island, and on

the outcome of our discussions with the Americans, which are continuing. 7 A separate report to the Committee on the Cyprus negotiations will be made in due course.

The Americans are also anxious about the possibility of

our complete withdrawal, from Oman. Here too it is not

possible to make any long-term plane, although we shall

be reducing our expenditure in Masirah as the staging-post

functions of the airfield themselves reduce.

NATO consultations

PRESENT) BEVÆRDY MATE: ÄTUONNON

G

The formal consultations procedure laid down in NATO on major

policy issues of this sort was meticulously followed. A full

presentation of our proposals was made to NATO at the time that Parliament was informed of them, and ample time with an allowance

for the Christmas break - was allowed for NATO to carry out the

necessary military as3c8oments and the subsequent political consideration of the Alliance's reaction to our proposals.

5. The NATO Secretary General's formal letter to me summarising this reaction is at Annex B. It expresses NATO's "Gympathetic understanding of the economic difficulties which the United Kingdom, in common with other member countries, is now facing", and paya tribute to the important military contribution which Britain now