SECRET

Any question about the

future level of the garrison

or of the Hong Kong

Government's financial

contribution.

There would be consultations with

the Hong Kong Government before any

decisions were taken affecting the

Hong Kong garrison as a result of

the Defence Review. In any event

there will have to be negotiations

under the Defence Agreement, at

some future stage, on the level of

the financial contribution after

1976.

If pressed for immediate

reassurance for the Hong Kong

population on the question of

the garrison.

I cannot really add to what I

have already said. (if pressed

further). It is the policy of

HMG to maintain our administration

of Hong Kong, but the Defence

Review will be all embracing and

I cannot say any more than I have

on the question of the garrison

at this stage.

2

SBERETET

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