CONFIDENTIAL
BACKGROUND NOTE
At present the Hong Kong garrison consists of:
RN
Army
RAF
1 frigate
5 patrol craft
2 UK Infantry battalions
3 Gurkha Infantry battalions
1 Artillery Regiment
1 Armoured Reconnaissance Squadron
1 Gurkha Field Squadron
8 Wessex helicopters.
plus support elements for all 3 Services. The present cost of
the garrison is a £42.OM. The current agreement with the Hong
Kong Government on costs expires in March 1976.
.2. After discussion with the Governor and CBFHK it is considered
that the garrison could be reduced by one major unit, 2 patrol
craft and certain support facilities and still remain a viable
force for internal security purposes. This would reduce the cost
at LTC '74 price levels,
to c £32M/ though a detailed costing is still being carried out
in preparation for detailed discussions with the Hong Kong Govern
have said that they ment. Ministers / would like the Hong Kong Government to con-
tribute 75% towards the cost of the reduced garrison but the
to be able to Governor has advised that they are unlikely to agree to a figure
of more than 17M ie double their present contribution.
3. The relevant section of the Parliamentary Statement on
3 December stated simply that "We intend to keep our forces in
Hong Kong, although we propose to make some reductions in them
and to seek from the Hong Kong Government a larger percentage of
their cost when the present cost-sharing agreement runs out in
1976." The Governor told the Executive Council on 3 December
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