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the need could be met by earmarking a battalion in the UK able

to deploy to Hong Kong within 7 days.

5.

The RN maintain a frigate and 5 minesweepers at Hong Kong;

RAF force levels are 8 Wessex helicopters and a Flight and

Section of the RAF Regiment.

Hong Kong Defence Contribution

6.

Following

Traditionally Hong Kong has made a contribution to HMG

towards the cost of its defence and of the assistance which

Her Majesty's Forces provide for internal security.

prolonged negotiations with the Hong Kong Government, the

settlement described below was reached in October 1971. The

Ministry of Defence accept that the average of £8 million per

annum is the most which could have been obtained from Hong Kong,

although it represented less than a third of the cost of the

garrison at that time. At current prices estimated annual cost

of the garrison for 1973/74 is £34 million and the average over

the next 10 years is assessed at £36 million (in functional cost

terms).

7. The present contribution:

£40 million spread over 5 years,

starting 1 April 1971, made up as follows:

Cash contribution

Capital works

Maintenance and minor

works

£12 million (at £2.4 million

per year)

£17 million (£2.9 million for the

first and second years, £3.4 million

for the third and £3.9 million for

the fourth and fifth years).

£11 million (2.2 million per year)

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/The

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