the relevant costs to defence votes (expressed as savings foregone), allowing for the Hong Kong Government's

subvention on the present basis, (£2.4M pa plus all works

costs) are:

Royal Navy

Numbers

Savings Foregone (SM)

Servicemen Civilians

1978/79 1983/84

Withdraw all naval

forces except for

175

minimal

0.8

0.8

5 Patrol craft

3

and communications

staff.

Army

Reduce from 6 to

51 major units

including Gurkhas.

7,700

2,800

Reduce support

13.0 +9.0

14.0 +१.०

elements

22.0

23.0

proportionately.

Royal Air Force

Retain 8 Wessex

helicopters,

370

270

2.6

2.6

intelligence,

communications and

support facilities.

Less:

Contribution from the Hong Kong

Government enhanced by:

8

8

c. As long as the present tasks of the military forces in Hong Kong remain, their size must be such as will give little scope for substantial savings in costs.

The only

way in which the aim to reduce the cost of our forces can be met will be to persuade the Hong Kong Government to

3-

SECRET UK EYES A

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