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OPD (67) 22: Defence Expenditure Studies

Hong Kong Aspects.

In a footnote on page 1 of the paper it is stated:

"For

present purposes we have not contemplated withdrawal from Hong Kong".

The reasons for this are as follows.

2.

In agreeing last December to an annual defence contribution

of £5 million from Hong Kong, Ministers decided that the garrison

should be reduced from 6 major units to 53 major units. At this

planned strength the garrison will already be below the minimum level

considered necessary (on a military assessment) for the maintenance

of our position in the Colony.

3. China regards Hong Kong as Chinese territory to be recovered

in due course. Meanwhile, because of the Colony's economic value,

it is prepared to accept the status quo. But if we show any sign of

abdicating our responsibilities (e.g. by withdrawing our military

forces entirely from Hong Kong) the Chinese will move very quickly

to take our place.

4. In the time-scale envisaged in this exercise we cannot see any

prospects for:-

(a) further limited withdrawal of forces from the Colony.

The Chinese attitude will not change in the years ahead.

They could at any time cause serious internal disturbances

in the Colony. The planned strength of the garrison

provides the bare minimum to meet such a threat;

Mr Cartet

/(b)

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