- Ju
Benal
45. There is only very limited scope for the formation of ad hoc units, to act in the infantry role in an emergency, to the high proportion of civilians in administrative units and the need for the military content to protect the
installations. Some economies, in both military and civilian posts, would be possible in administrative units, if the field force is reduced. Only very marginal savings in the training organisation would be feasible.
46.
The Royal Navy and Royal Air Force contribution should remain as they are, although the Fleet maintenance unit, other than the element required by the Hong Kong Squadron, and 444 RAF Signals Unit, might be taken out of any future defence costs agreement and shown to be the exclusive financial responsibility of the UK Government.
47.
One of the conditions of the present defence costs agreement is that it should be subject to review if the Garrison force level was varied by more than one major unit. This is an important factor to be borne in mind; as is the thought that if the British Forces were seen to be tailor made and specifically designed to Hong Kong's IS needs and to a realistic and strictly limited threat on the Border, it might make it easier for the Hong Kong and United Kingdom Governments to agree on the size of any future defence costs agreement.
48.
Although a reduction in British units appears more financially attractive than one in Gurkha units, there would be only very limited financial savings, unless the units removed were to be disbanded. Moreover, too large a cut in the UK content could be construed as a lessening of HNG's commitment. It would be virtually impossible to make any significant economies in Gurkha units or LEP, both of which are particularly cost effective.
49.
OPTIONS
The UK and Hong Kong Government are in effect' faced with three options, which are set out below:
50. Option A. To maintain the present force level and the status quo, which is always so attractive in Hong Kong. This would permit of no financial savings by HMG or Hong Kong, and would certainly precipitate a major disagreement between the two Governments, if Hong Kong was invited to pay a greater sum in real money terms or a higher percentage of Defence Costs, than under the present agreement. This would always, however, be the safest military solution and produce a balance of all arms with all the accruing benefits. Such a Garrison is not extravagant in the light of the potential threats.
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SECRET