SECRET

garrison at present stands at 7 major units having been reinforced.

5. The fighter aircraft were recently withdrawn. The naval vessels

(which were to have been withdrawm) are to be retained for the time being.

Air cover is being provided fron Singapore.

Local Forces

a Police Force of about 10,000 all ranks. This is an

6.

From local funds Hong Kong maintains:-

(a)

K

overwhelmingly Chinese in composition.

(b)

efficient force

a Volunteer Defence Force of about 900 strong of whon

about 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. There is steady

expansion of the Police Force but, because of the political situation,

there is no possibility of a local force dispensing with the backing of

British troops.

Defence Contribution

7. The Colony has paid an annual cash contribution to imperial defence since 1863. In 1958 this was fixed at £11⁄2 million per annum. In 1964

the Hong Kong Government agreed to contribute, in addition, up to £6 million

over the next six years towards the Army and R.A.F. works programme in the

Colony.

8.

In the context of the United Kingdon Defence Review a further

agreement was successfully negotiated in December 1966 under which the

Colony agreed to pay £5 million a year for the next four years. The

formula reached was that Hong Kong agreed to make an annual contribution

of £1.5 million plus a special additional contribution of £3.5 million

per annum towards the "local costs" of the garrison (which were assessed

at £9

G

10 million in a total cost of about £16 million).

19.

SECRET

Share This Page