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Tresany Carciling 1. Defence E-CASECRET

MPBW Sprethan R.H.A.

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britfetis

B.

2/10

Draft Letter to Governor, Hong Kong, from FCO

ANNEX B

Your proposals for Hong Kong's defence contribution after

April, 1971, as set out in your letter of 7 July, have now been

discussed with the Ministry of Defence, the Treasury and the

Ministry of Public Building and Works.

2. Although the extent of our Far Eastern presence has not yet

been finally decided we think that it is sensible to discuss your

proposals on the assumption of an Army Garrison comprising

6 major units. This follows from a recent assessment made by the Commander, British Forces, Hong Kong, in consultation with you,

that provided

(a) the situation on the border remains reasonably stable;

(b) the internal threat in Hong Kong does not significantly

increase; and

(c) the strength of the Royal Hong Kong Police Force continues

to expand;

the reinforcement time for an extra major unit could be extended

from 72 hours to seven days. This removes the requirement for an

extra unit to be stationed in the Colony as had previously been

intended. The remainder of the Garrison has been assumed to be as

shown in Annex A to my letter of 9 October, 1969, except that the

RAF Whirlwinds were increased in number from six to ten earlier

rearsed running costo The amex to this letter shows the reduced coeting-

this year.

(Excluding Works)

of the Garrison in 1971/72 and replaces the information that we

gave you in 1969.)

3. There are two points in relation to your proposals on which

we should be grateful for clarification.

(a) Capital Works

SECRET

The main reasons for the increase in costs in spite of the reduction in the numbs of Army units are first, the increased Cost of the new Service pay structure introduced last Apost. and second, the fact that it has recently been found possible to bring the Army units in ore Colony up to strength - a development: which was not

allowed for. Last year.

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