Page 128
THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMEN
The circulation of this paper has been strictly limited.
It is issued for the personal use of....
TOP SECRET
41
Copy No.....
CABINET
DEFENCE AND OVERSEA POLICY COMMITTEE
CONFIDENTIAL ANNEX
(OPD(67) 15th MEETING, ITEM 1) FRIDAY, 14th APRIL 1967 at 11.15. a.m. :)
1.
DEFENCE EXPENDITURE STUDIES
(Previous Reference: OPD (67) 14th Meeting, Item 2)
The Committee had before them a report by the Official Committee (OPD(67) 26) on the politico-military and economic implications of Far East force reductionS
THE DEFENCE SECRETARY said that the report by officials dealt as
fully as was possible at this stage with the politico-military and economic implications of reducing our forces in Singapore/Malaysia by
about half by 1970-71 and of withdrawing them from the mainland of Asia (apart from Hong Kong) by 1975-76. Its cover note suggested the line to
be taken in the initial consultations with our allies on our proposals. Taking generous assumptions about the amount of aid that would be needed
to offset our force withdrawals, the report showed that, over a ten year
period, the cost of such aid might amount to £300 million compared with
a saving of £2,000 million in defence expenditure, while in terms of
overseas expenditure net costs should drop from £74 million to £40 million
in 1975-76, including aid and the cost of a minimum maritime and air
presence using facilities in Australia. The report rightly drew attention
to the difficult problem that would arise in deciding the form which aid
to Singapore and Malaysia should take, given the fact that we should be
withdrawing our defence support. As regards the reactions of our allies
to our plans, the report by officials painted a gloomier picture that was
perhaps justified by advice received from some of our representatives in the countries concerned during the past year and he had himself said,
-1-
Page 128
TOP SECRET
Page 128
(97294)
No comments yet.
Private notes are available after approval.