CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 67

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THE PRIME MINISTER, summing up this part of the discussion, said that

in deciding how to respond to the Maltese attitude tactical and presentational considerations were important. The arguments on this aspect were nicely balanced, but it was tactically wise to give the Maltese no opportunity of claining that there had been a breakdown through intransigence on our part.

If we agreed to go ahead with the negotiations despite the continuance of the

measures against our forces, our position would be the stronger if there were

a subsequent breakdown. The balance of view in the Committee supported the view of the Minister without Portfolio that we should accept the "status quo" on the measures against our forces and press on with the negotiations with

Dr. Olivier.

The Committee

(1) Agreed not to insist on the cessation of the Maltose neasures

against our forces as a pre-condition for negotiations with

the Prime Minister of Malta (Dr. Olivier) on the proposed defence run-down.

(2) Invited the Minister without Portfolio

(i) (ii)

to reply on the lines he had proposed to Dr. Olivier; in giving guidance to the Press on the message fron

Dr. Olivier and our response to it, to take account of the points made in discussion.

Conduct of Negotiations

THE MINISTER WITHOUT PORTFOLIO (MR. GORDON WALKER) said that the

report by officials attached to OPD(67) 13 was in the form of a detailed

brief for our negotiators in the discussions with Dr. Olivier. The cover

note by the Chairman of the Defence Review Working Party set out the assump-

tions on which the report by officials was based, and listed a number of

questions for consideration by Ministers at this stage: should we make some

concession as an inducement to the Maltese to nationalise the Malta Dockyard;

should undrawn balances of the aid allocation to Malta under the Financial

Agreement be regarded as still available to Malta; should the special treat-

ment accorded to Malta in respoct of migration into this country be

continued; the size of the concession we might offer in respect of

redundancy payments; should we take an initiative in respect of involving the North Atlantic Treaty Organisation (NATO) in a study of our capacity to

defend Malta; and what continuing Anglo-Maltese joint machinery we might

accept to oversee progress on the various measures that might be agreed on.

Following his discussions in Malta with Dr. Olivier, he saw the main issues

in the negotiations in London as follows. First, how much extension of the defence run-down into a fifth year we were prepared to offer: officials had

not yet been able to consider the various possibilities in detail.

Secondly, we should be pressed to make a concession on redundancy payments;

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