TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 238

2

silence an

Our non-NATO partners have in general accepted our proposals with resignation. Some points of detail remain to be cleared up. For example, in the light of talks about the arrangements for our withdrawal from Singapore we may make a minor adjustment in

the timetable to help the New Zealanders. As regards Hong Kong, the groundwork has been laid for negotiations in May about the

much larger contribution we expect the Hong Kong Government to

make from next year to the cost of a reduced garrison. On Cyprus the President and Dr. Kissinger made very clear that they would be very strongly opposed to our total withdrawal

but less concerned about a reduction in the level of our forces

there. In any case we could not withdraw while the political

situation in the island remains so unsettled. We must there-

fore maintain a presence for the time being. We have however already reduced the forces stationed there and will cut them

further so that before the end of the year our costs will be

down to about one-third of their former level.

Brunei

In NATO we made it clear that there could be no question of increasing the levels of defence expenditure we had provisionally approved but said that, within these ceilings, we were prepared to consider modifications to our proposals

a difference distribution of cuts.

or

We have now had NATO's formal comments. They express considerable disquiet at our proposed reductions which they say "are on a scale considerably larger than that proposed by any other ally in recent years". They are particularly con- cerned about our proposed reductions on the flanks and especially the Mediterranean, and have expressed some anxiety about our maritime reductions; but they have not suggested any alternative way of making the necessary savings.

The Defence and Oversea Policy Committee examined NATO's comments and decided that we should stand firm on our proposals. But the Committee also concluded that it would be right to offer

/to take certain