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4.

SECRET

Conversely a decision to substantially reduce

the garrison in Hong Kong would bring into question

the future of the brigade of Gurkhas since the

colony provides the main Gurkha base.

5. The Hong Kong Government at present makes a

defence contribution of an average of £8 million per

annum. The Memorandum of Understanding which covers

this expires in 1976 and a new understanding would

be necessary in the light of any decision to change

the present level of the garrison.

6.

Any hint that HMG were preparing to reduce the

size of the garrison could have a grave effect on

confidence in Hong Kong and it is thus essential

that there should be no public reference to it.

The first requirement is thus to consult the in strict confidue Governor and Commander British Forces on whether the

present garrison can be reduced; we should also need

their views on the timing and form of any withdrawal

if they were prepared to contemplate it or Ministera

were to decide on it in spite of the greater risks

involved.

Lon

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SECRET

(17259) Dd.897459 250m 12/72 G.W.B.Ltd. Gp.863 (16941) Dd.897300 250m 9/72 G.W.B.Ltd. Gp.863

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