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This
forward defence could no longer be preserved. concept involves very considerable reductions in the Armed Forces and their civilian and industrial support, will not be easy to present to our NATO allies, and comes close to the margins of security of the United Kingdom itself.
3. Ministers have decided that a correspondingly stringent approach must be taken to our military commitments outside NATO. Where possible these will be abandoned altogether; where this cannot be done the strictest economy is to be achieved. Ministers accept a need, so long as Hong Kong remains a British colony, to retain a garrison there to act in support of internal security and to maintain public confidence. But they take the view that Hong Kong should pay for the forces stationed there.
It has been noted that the present financial arrange- ments expire in 1976, and the view has been expressed that the Hong Kong Government should be told that we would provide forces only to the level for which they were prepared to pay.
The annual cost to HMG at current prices of the forces presently stationed in Hong Kong, assessed on the basis of the amount by which the UK defence budget would be reduced by complete withdrawal and subsequent disbandment of the forces concerned, is:
RN (Frigate, 5 Patrol craft and
support)
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5.5
Army (6 2/3 teeth Arm units and
support)
25.3
RAF (8 helicopters and support)
2.7
Total
33.5
In addition, under the 1971 Agreement, the Hong Kong Government makes an annual contribution of about
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/£8.5 m
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