!
TOP SECRET
7 major units
Army
Navy
2 frigates
R.A.F.
5 coastal minesweepers
1 small tanker
6 Whirlwind helicopters
Ministers have also approved the stationing of a small unit of fighter aircraft in Hong Kong, "subject to further examination of the possibility that these aircraft might be manned and
serviced from local resources."
19. The full budgetary cost of the forces we now maintain in Hong Kong is about £20 million a year; it is estimated that after 1971 it will be about £25 million a year (excluding the cost of a small unit of fighter aircraft, the provision of which is under examination). In cash and services Hong Kong currently
contributes to defence at the rate of £5 million per annum under an greement which runs until March, 1971.
Note:
The gross figures quoted above give the actual running costs of the forces deployed in Hong Kong. They are not the same as the money which would be
saved if the commitment were abandoned. This
saving would depend on decisions taken at the time on the disposal of the forces released and on any consequential changes in provision for supporting facilities, e.g. communications and transport. As foreshadowed at OPD(68)
11th Meeting, it is only possible to give a range of figures of possible savings; this has since been assessed at £10-40 million a year.
The Ministry of Defence consider that in practice
the achievable savings would fall well short of the higher figure.7
TOP SECRET
/ C.