Canberra, 20 February 1961
Secret
Background Note for Ministerial Discussions with the Right Honourable The Earl Mountbatten of Burma on 21 February 1961
Mr. Macmillan has informed Mr. Menzies that one of the objects of the Chief of Defence Staff in visiting Canberra is to outline in some detail the United Kingdom’s short-term proposals arising from their current defence review.
The United Kingdom’s examination of the broad issues points to the conclusion that they will have to reduce their overseas commitments. They have been studying both the long–term and short-term implications of this and have reached some tentative conclusions but not yet formulated final proposals.
Long-Term Assessment
Their study of long-term commitments in the Far East is based on the assumptions that they will retain Hong Kong, their defence facilities in Singapore and will continue to contribute to SEATO. One of the elements of their SEATO contribution will be a continuation of their capacity to deliver nuclear weapons on China, either by air or from the sea. Mainly for political reasons, however, they are not thinking of deploying army nuclear weapons units in the South East Asian theatre. They aim to maintain a powerful naval force in Far Eastern waters and will maintain their contribution to the Commonwealth Strategic Brigade. 1 Also, they will take care of internal security in Hong Kong and Singapore and in their other possessions in the area.
Short-Term Assessment
In the short-term, the United Kingdom will have to make some reductions because of manpower difficulties and balance of payments problems. The garrisons in Cyprus and Libya and the Headquarters in Cyprus are being reduced. They are not contemplating any reduction in naval and air forces in the Far East; in fact they propose to station an additional Royal Marine Commando in the area. However, to effect some early manpower economies they will have to take risks on internal security. In this connection, they propose to withdraw one Gurkha Infantry Battalion and one medium Artillery Regiment from the forces available for internal security in Hong Kong and Singapore. Also they will close down one Divisional Headquarters, one Brigade Headquarters and certain ancillary units. This will mean a redeployment of United Kingdom Forces in the Malaya–Singapore–Borneo area but will not affect their contribution to the Commonwealth Strategic Brigade.
Mr. Macmillan would like Australia’s initial reactions to the short-term plans which the Chief of Staff will outline in detail. It is expected that the prospects and requirements for the long-term will be discussed with Mr. Menzies in London.
1 Formed in 1955 and consisting of Australian, British and New Zealand forces stationed in Malaya.
[NAA:A1209, 1961/94]