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the idea of accompanied tours: the reasons for this change of

attitude were mainly that the outlook for Hong Kong since

Communist confrontation there ended in December 1967, had

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)

possessed by, accompanied tours.

14. Accordingly, the Ministry of Defence are now examining

Commander-in-Chich, has hast recommendations put forward by CINCFE, 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. Itisan

aspect which could be of considerable importance to Hong Kong.)

Defence Contribution

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16. The Colony has paid an annual cash contribution to

Imperial" defence since 1863. In 1958 this was fixed at £11

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.

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