TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 26

CONFIDENTIAL

CONFIDENTIAL

continue to aim at realistic progress towards arms limitation in

the Indian Ocean. Any such arrangements would clearly require

the participation of the US and Soviet Governments; so we support

the suggestion made by the Prime Minister of Australia that the

US and Soviet Governments should consult together on the possibilitz

of mutual restraint in the Indian Ocean.

39. Oman is fighting against a professionally organised and

externally supported rebellion which threatens the stability of the

Arabian Peninsula, an area of great economic importance to Britain

and from which we receive a lot of our oil. We do not therefore think

that it would be right in present circumstances to make any change

in the arrangements we have with the Sultan of Oman. We shall,

however, make some economies as our need for staging facilities at

Masirah declines, and shall continue to keep the level of our

military assistance to the Sultan under review.

40. In Cyprus we propose to make some early reduction in our

forces stationed there. Meanwhile in order to ease the severe

accommodation problems that have arisen within the Sovereign Base

Areas (SBAs) since the events of last year, the squadrons of

Lightnings and Hercules permanently based on the island, together

with the Vulcan strike aircraft stationed there in support of CENTO,

have been withdrawn and replaced by smaller numbers of aircraft on

detachment from the United Kingdom. For the same reason there will

be some reduction in Army personnel.

41.

We will retain our membership of the Central Treaty Organisation

(CANTO), but will no longer declare any forces to the Organisation:

the CANTO-assigned Canberras and Nimrods will be withdrawn from Hilto

I-19

CONE THEMTTAL CONFIDENTIAL