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is also hoped to continue to arrange training for them in Australia, New Zealand, Fiji and possibly Brunei.

The Royal Air Force

8. Fighters. Although a permanent fighter presence in Hong Kong would have been welcomed locally the costs involved were found to be too great. Nevertheless it is planned that

RAF Aircraft will continue to be seen there as they will

visit the Colony as an extension of their normal training

activities in the Far East.

9.

Helicopters. The establishment of the RAF helicopter squadron has recently been increased from 6 to 10 Whirlwinds to ensure that at all times the force is capable of lifting

one platoon simultaneously.

Defence Contribution

10. The Hong Kong Government's present contribution in cash. and kind towards the cost of stationing troops in the Colony is £5 million a year out of a total cost of some £15 million. The present Agreement runs out on 31 March 1971 and negotia- tions for a new Agreement are in hand. The budgetary costs of the garrison for 1971/72 are put at £20 million a year of which the internal security element is estimated at being

rather over £10 million. It is hoped that the Hong Kong

xeasonable for for Government might agree to meet the whole or a very large part of this last figure. It is possible that they will prefer to offset some of their contribution by continuing to provide

a number of works services,

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