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HKIOD (3)
PO
Roberts
Defence Dept..
PS/Lord Goronwy-
PJ/PUS
Sir D Watson
Mr Thomson
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[TEXT]
1.
Personal for Governor, Hong Kong.
Your telno. 953: Defence Review.
Ministers were not specific about force levels. But their decision was in the context of technical advice that the cost of a six and two-thirds unit force could, with certain economies, be reduced from £42m. to 38 m. without rapid reinforcement capability (para. 1(A) of your telno. 853). We thought that with further economies (e.g. the costing of the battalions at less than full strength so as to reflect the real position, and the substitution of another Gurkha for a British battalion), the cost might be brought down without reductions in major units to around the £34m. which had been estimated for a five and a half unit force with reinforcement capability. Your £17 m.
Your £17 m., fifty per cent philosophy might therefore still be valid even without the rapid reinforcement capability which none of us liked.
/2.
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