CONFIDENTIAL administration (and a growing number of officials are leaving the Civil Service for the better-paid private sector) it is by no means clear that the Plan will be successfully completed. Anglo/Saudi Relations 7. While Britain and Saudi Arabia share many of the same interests in the Middle East there have been points of friction from time to time over the past 25 years. There has however been a considerable improvement in Anglo/Saudi relations since 1974. This has been helped by: a) the better relations we both enjoy with Egypt b) our shared interest in helping Oman and the Yemen Arab Republic resist externally inspired subversion. c) the successful implementation of the Government to Government agreement on the Air Defence Assistance Project (under which 2,300 British Aircraft Corporation personnel help in training and equipping the Saudi Air Force. We expect this contract to be extended this year). 8. This improvement has, since late 1974, been reinforced by a fairly intensive programme of Ministerial visits in both directions. The Chancellor, the previous Secretary of State for Defence and the Prime Minister when Foreign and Commonwealth Secretary, have all paid successful visits to Saudi Arabia, while Crown Prince Fahd paid an official visit to Britain in October 1975. The Minister of Defence, Prince Sultan, paid a successful visit to Britain in November 1976. CONFIDENTIAL
