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social standards to an acceptable level. This would also demonstrate continuing British interest in Hong Kong. But the overall cost to G would be unlikely to be any less.

Recommendations

8.

(i) The Hong Kong garrison should be

reduced as proposed, with the aim of reducing the overall cost to about £34 million per year. Comprehensure

(ii) When

all decisions on the Defence Review have been reached, confidential consultations should be begun with the Hong Kong Government in accordance with the Governor's advice. The aim would be an increase in Hong Kong's contribution, under the next Defence Agreement, to not less than £17 million at 1974 prices.

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