May 17, 1974

Our basic strategy with respect to Malaysia is to impress her with our credible defense posture and capability. Thus the announcement on Phil. Air Force Day of the need to increase our armed forces first by [illegible] then to 256,000. I did not announce that including the local police of about 100,000 and private security groups of 40,000 this would total 396,000 by the end of 1976.

Today we sign the Memorandum of Agreement with the US through Amb. Sullivan for the setting up of the Colt M-16 rifle factory in Bataan.

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