LONDON: Prime Minister Harold Wilson announced today [Jan 16] a virtual withdrawal of British military power East of Suez as part of a dramatic series of moves aimed at restoring the country`s economy. The Prime Minister, his face drawn and grave, also announced deep cuts in the social services which have earned Britain the title of `welfare State` He told the House of Commons that British forces, with a few exceptions, would be withdrawn from Asia and the Persian Gulf by the end of 1971. Following these withdrawals, Britain would have practically no military bases outside Europe and the Mediterranean.

Mr Wilson said the Government had also cancelled an order for 50 American swing-wing F-111 fighter-bombers.

He estimated that the Government`s economy measures would result in savings of nearly 800 million pounds over the next two years.

The conservative opposition jeered as the Prime Minister announced the defence cuts, and Leftwing Labour MPs jeered as Mr Wilson announced reductions in social services. Mr Edward Heath, leader of the Conservative Party said the Government`s defence policy was `in ruins` and called on the Cabinet to resign. Agencies