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COLONIAL

OFFICE

situation of their own initiativo. If local action was pushed

to the point that disturbances resulted in heavy loss of life or

bloodshod, it is most unlikely that Poking could s tand asido.

Tho situation could rapidly develop into ono of all-out confrontation

(paragraph 11 abovo).

Defence

14.

At the end of 1966 our military forcos in Hong Kong consisted

of 62/rds major units, a flight of fighter aircraft and three coastal

minoswoopers. In accordance with Dofonco Review decisions takon that

year, the fighter aircraft wore withdrawn in January of this year and

the throe coastal minoswoopers are scheduled to be withdrawn

in Soptombor. Alternative arrangements to provido sea and air cover

from Singapore are boing mado,

15. A docision was takon ih December last year to reduce the garrison

by ono major unit in the course of the financial year 1967-68. No

decision was thon takon regarding the exact timing of the withdrawal,

The Chefs of Staff havo this wook recommended to the Dofonco Scerotary

that, because of rocont dovolopment in Hong Kong, a decision on timing

should be indefinitoly postponed. Wo had onvisagod that before any

announcement was made about this roduction of one major unit, wo should

give advance information to the Governments of Australia, New Zeal and

and the United States. Since we may now indofinitely postpone a

decision on the timing of this reduction it is considorod that there is

no point in montioning it at this stago to tho Australians or the New

Zoal andors.

Commonwealth Offico,

8th Juno, 1967.

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