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TO IMMEDIATE FCO TELNO 853 OF 23 AUGUST. 1974
PERSONAL FROM GOVERNOR.
fice cry
R. Kisi
YOUR TELEGRAM NO 718: DEFENCE REVIEW: HONG KONG.
RECEIVED IN REGISTRY No. 51
30 AUG 1974
HKK 10/9
FORCE LEVELS: I BROADLY ACCEPT PROFESSIONAL DVICE THAT THE GARRISON SHOULD BE OF THE FOLLOWING ORDER:
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A) WITHOUT REPEAT WITHOUT A REINFORCEMENT CAPABILITY: MORE OR LESS THE PRESENT GARRISON OR 6 2/3 MAJOR UNITS BUT WITH ECONOMIES AMOUNTING TO ABOUT POUNDS STERLING 4M. A YEAR, PRODUCING AN ANNUAL TOTAL COST (ON THE BASIS OF YOUR FIGURES) OF POUNDS STERLING 38M.
B) WITH REPEAT WITH A REINFORMCEMENT CAPABILITY: AS IN OPTION (C) IN GENERAL BRAMALL'S PAPER, 1.E. A REDUCTION OF ONE UK UNIT WITH CORRESPONDING CUTS PRODUCING ECONOMIES OF ABOUT POUNDS STERLING 8N. A YEAR AND A TOTAL ANNUAL COST OF POUNDS STERLING 34M.
2. HONG KONG CONTRIBUTION:
ON THE ONE HAND I COULD NOT RECOMMEND TO EXECUTIVE COUNCIL A SIZE OF CONTRIBUTION THAT WOULD NOT ASSURE AN EFFECTIVE GARRISON (NOR WOULD THEY ACCEPT IT). ON THE OTHER HAND, NOT ONLY IS THERE A LIMIT TO THE INCREASE HONG KONG CAN SHOULDER, BUT PSYCHOLOGALLY H.M.G.'S WILLINGNESS TO CONTRIBUTE IS A CRUCIAL ELEMENT IN MAINTAINING CONFIDENCE. (SEE PARA 8).
3. UNDER THE 1971 AGREEMENT HONG KONG'S CONTRIBUTION WORKED OUT
AT SIGNIFICANTLY UNDER 1/3 OF THE THEN NOTIONAL COST OF THE GARRISON (1.E. POUNDS STERLING 8M. OUT OF POUNDS STERLING 28M.). I WOULD HAVE A ROUGH RIDE IN EXECUTIVE COUNCIL AND THE PRESS OVER ANY INCREASE OVER THIS, BUT I THINK THAT FOR THE NEXT AGREEMENT THIS PROPORTION COULD PROBABLY BE RAISED TO 50 PER CENT. I SUGGEST THAT THE NEXT AGREEMENT SHOULD BE EXPRESSED IN TERMS OF SUCH A PERCENTAGE SPLIT INSTEAD OF AS A LUMP SUM.CONTRIBUTION.
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4. BUT I DO NOT THINK THIS WOULD BE FEASIBLE IF THE RESULTANT FIGURE PLACED A BURDEN OF MORE THAN POUNDS STERLING 17M. A YEAR ON THE HONG KONG BUDGET (SEE PARA 7 BELOW).