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possible options, Commander FARELF was recently instructed by CO to study the feasibility of a reduced Gurkha force of four, three or two battalions. He concluded that though all ere feasible, due to the lines of communication and training requirements á larger force was more cost effective than a smaller one. You should be aware that this study was carried out on a very restricted "need to know" basis.

Timing of a decision

6.

If a decision was taken to disband the Gurkhas long before it could be implemented there would be a serious danger of a leak with a possibly catastrophic collapse in morale in the Brigade. For this reason MGBG has argued strongly that a decision should be postponed until shortly before it could be implemented. Working on the dates in paragraph 4 above this would mean 1971 or 1972. He believes that he personally, as the head of the Brigade, and one to whom Gurkha soldiers feel a personal loyalty would be in an intolerable position if he had over a long period to conceal his knowledge that the Brigade was to be disbanded.

7

The agreement by which the Hong Kong Government contribute towards our defence costs will have to be renegotiated by March 1971. This could involve discussion of the long term nature of the garrison, and hence the future of the Gurkhas, early in 1970 (see separate brief). For the reasons given in para 6, however, there would be advantage in finding a formula for the negotiations which would not require a decision at that stage on the future of the Gurkhas.

8. There is also the problem of providing a new barracks for the extra battalion that will be in Hong Kong after our withdrawal from Singapore and Malaysia. As you will see from paras 16 and 17 in your brief on the garrison, the decision whether this barracks should be for a Gurkha or a British unit would have to be taken before mid-1971 if delay in completing the barracks was to be avoided. Accept- ance of some delay might, however, be preferable to too early a decision on the Gurkhas.

9. It will thus be seen that the earliest date by which a decision might possibly have to be made is early 1970, but that there are strong arguments for deferring a decision for considerably longer. In any event no decision is required this year.

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