Defence Contribution
Royal Navy
Army
Royal Air Force
SECRET
Two Frigates
Five Mine counter measures
One small tanker
7 major units
Six Whirlwind helicopters
(already in Hong Kong) R.A.F. staging elements R.A.F. Signals elements
A recommendation that the R.A.F. presence should also include a permanent fighter element of five Hunter aircraft has like- wise been approved subject to further examination being given to the possibility that the aircraft might be partly manned
and serviced from local resources. This matter is now the
subject of a study by the Commander-in-Chief, Far East. It has also been decided that it would be premature at this stage to decide where the cost of the Garrison should be
borne.
27. From local funds Hong Kong maintains a Police Force of about 10m000 all ranks (overwhelmingly Chinese in composition) and a Volunteer Defence Force about 900 strong of whom
approximately one third are Europeans. The reliability of these forces could not be depended upon if doubt arose about British intentions and ability to retain control of Hong Kong
or if disorders occurred after a prolonged period of
subversion.
28.
The Colony has paid an annual cash contribution to Imperial Defence since 1863. In 1958 this was fixed at £1m. per annum. In 1964 the Hong Kong Government agreed to contribute, in addition, up to £6m. over the next six years towards the Army and R.A.F. Works Programme in the Colony. In the context of the United Kingdom Defence Review a fresh agreement was successfully negotiated in December 1966 under which the Colony agreed to pay £5m. per annum for the next
four years.
The defence contribution has always been a
sensitive issue in our relations with Hong Kong since the Colony has been the only one to have made regular and substantial payments. The 1966 negotiations were carried through by Mr. Fred Lee (then Secretary of State) with great difficulty and the agreement when announced aroused unanimous public opposition locally. Serious political consequences
would
...