CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 37

SECRET

Page 37

able.

repercussions elsewhere would be such as to make the proposals unaccept-

In these circumstances, there was general agreement in the

Committee that other means must be found of providing an opportunity which the Maltese Government could politically accept to withdraw from

their present position and cease the harassment of our forces. There was also general agreement that such opportunity could not be provided by

an offer to slow down still further the rate of reduction in our forces

in order to mitigate the economic consequences for Malta, though it was

recognised that if in consequence it proved necessary to provide additional

aid for Malta, there would not only be no net gain to the Exchequer, or

reduction of our expenditure in foreign exchange, but also that in the

short run the provision of further aid would be wholly ineffective in

providing a source of employment alternative to that offered by our

forces.

In further discussion there was general agreement that the least

unsatisfactory course was to offer to Dr. Borg Olivier to arrange for a

snall mission of prominent United Kingdom industrialists to visit Malta

to advise on its more rapid development in order to mitigate the economic

consequences of our reduction of forces. It was also agreed that until

we could consider the reaction of Dr. Olivier to this offer we should not

agree to pay the customs duties on imports for our forces which were

demanded contrary to the Defence Agreement.

The Committee

(1) Invited the Minister of State for Commonwealth Affairs, in consultation with the First Secretary of State, the Chancellor of the Exchequer, the Defence Secretary, the President of the Board of Trade and the Minister of Overseas Development to instruct the Acting High Commissioner, Malta, to put to Dr. Olivier an offer to send out a mission of United Kingdom industrialists to consider ways in which the economy in Malta could be more rapidly developed to mitigate the consequences of the run down of our forces.

(2) Agreed that the offer indicated in Conclusion (1) should

be made known to the House of Commons in the debate that afternoon.

(3) Agreed that no payment should be made of the oustons duties which, despite the provisions of the Defence Agreement, were demanded by the Maltese Government on supplies imported for our forces until we had ascertained the reaction of the Maltese Government to the proposal that we should send a mission of industrialists.

-3-

SECRET

Page 37

Page 37

(97792)