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improved sufficiently to warrant taking a slight risk over the security, in the event of an emergency, of the additional number of Service families involved, in return for the very considerable advantages (particularly in relation to morale)
of accompanied tours.
14. Accordingly, the Ministry of Defence are now examining recommendations put forward by Commander-in-Chief, Far East, with the support of the Governor and of the Commander British Forces, Hong Kong, that the existing British units in Hong Kong should continue to be accompanied. This exercise is being carried out quite independently of any decision that may be reached on the future of the Gurkhas although it is recognised that such a decision could substantially affect the number of
British troops stationed in Hong Kong.
15.
No clear picture is at present available as regards the comparative costs of accompanied and unaccompanied tours and at present a study of this aspect is being undertaken by the Ministry of Defence at the request of the Treasury. Cost is a factor which could have a considerable bearing on the eventual decision. If costs vary markedly between these alternatives, this must surely influence Hong Kong's final judgment on the issue, bearing in mind the annual contribution it is required to make to the costs of the garrison.
Defence Contribution
16. The Colony has paid an annual cash contribution to "Imperial" defence since 1863. In 1958 this was fixed at £12 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 RAF works programme in the
Colony.
17. In the context of the United Kingdom Defence Review a further agreement was successfully negotiated in December, 1966, (to run from April, 1967) 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
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