Cat September 1974
priced,
SECRET
HONG KONG DEFENCE CONTRIBUTION
1.
The present cost of the UK forces in Hong Kong is about S40 million Hong Kong contribute about £10 m. (25%) towards £40 this under an agreement due to expire in March 1976. The original agreement in 1971 was for a contribution of £81 m. which, at that time, was about 28% of the cost of the garrison. The present garrison totals 6 major units/battalions.
Under the Defence Review, Ministers propose that the forces in Hong Kong should be somewhat reduced, and Hong Kong's contribution increased. I attach the relevant passage from the Defence Secretary's statement of 3 December.
3.
The Ministry of Defence and Commander British Forces Hong Kong (CBF) have conducted a review of the size and composition of the Hong Kong garrison. They have recommended that the forces should be reduced to the following teeth arm units:
RN
1 frigate
3 patrol craft
2.
NKK 10/9
224A
Army
RAF
1 artillery battery
1 British infantry battalion
4 Gurkha infantry battalions
2 Gurkha engineer squadrons
1 helicopter squadron
This represents a reduction of about one major unit/battalion. The MOD's latest estimate of cost (based on September 1974 prices) is that this force will cost in 1976/7, including works services, about £43.3 m. This represents an increase of about $10 m. over the estimate at 1973 prices. It may well be, therefore, that by 1976, when the present Defence Agreement expires, the total cost of the reduced force will have risen to about 250 m.
CECRIM
14.
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