SECRET

Defence

Contribution.

East.

Since it would not be possible to reinforce the

Hong Kong Garrison from Singapore or Malaysia in time

of need, the previous Government decided that, after

1971, the Garrison should consist of :

3.

Royal Navy

Army

Royal Air Force

Two Frigates

Five Mine counter measures

One small tanker

7 major units

Ten whirlwind helicopters

(already in Hong Kong)

RAF staging elements

RAF Signals elements

From local funds Hong Kong maintains a Police Force

with an establishment of about 12,000 all ranks (overwhelmingly

Chinese in composition) and a Volunteer Defence Force about

900 strong of whom approximately one third are Europeans.

The reliability of these forces could not be depended upon

if doubt arose about British intentions and ability to retain

control of Hong Kong or if disorders occurred after a pro-

longed period of subversion.

4.

The Colony has paid an annual cash contribution to

Imperial Defence since 1863. In 1958 this was fixed at

£1m. per annum. Under the current agreement (which was

negotiated in 1966) the Colony pays £5m. per annum. The

defence contribution has always been a sensitive issue in

our relations with Hong Kong since the Colony has been the

only dependent territory to have made regular and substantial

payments; and the 1966 negotiations were carried through by

SECRET

/Mr..

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