CONFIDENTIAL
3.
Further discussions between officials paved the way for
high level negotiations between the two Governments in Hong
Kong from 23 October - 1st November 1975 in which the Minister
of State for Defence represented HMG. In the course of the
negotiations the Minister of State took the opportunity of
explaining HMC'e position to the Unofficial members of the Hong
Kong Executive and Legislative Councils, as well as negotiating
formally with the Governor and his advisera. The negotiations
were based on the acceptance by both Governments of the need
for a garrison capable of maintaining the security and integrity
of Hong Kong and demonstrating HMG's continuing responsibility
for the colony. The security needs of Hong Kong in present
requif
circumstances, and the forces required to meet them had already
Write lea Hk Swanmark)
been the subject of thorough joint study and agreement was reached
ya
in the negotiations that further savings were possible.
turkeer
The
(future) garrison will therefore be reduced, by the withurawal
of an infantry battalion, the artillery battery and the frigate,
[to
leaving me to agreed minimum sorriser of
to one comprising 4 infantry battalions (3 of them Gurkha
battalions), an engineer squadron, 5 naval patrol craft, and an
RAF Wessex helicopter squadron. The total cost of this reduced
garrison at September 1975 prices is estimated to be about
£42.5M a year.
1. The way in which the costs of the reduced garrison are to
be shared between the two Governments after March 1976 was a
major topic for discussion during the Minister of State's visit
to Hong Kong. He exaplained the reasons why HMG believed that
Hong Kong must in future bear a larger proportion of the cost of
the garrison. The Hong Kong Government for its part accepted
that in a future agreement it would have to contribute a substent-
ially higher proportion than in the past, but emphasised that
/
CONFIDENTIAL
42-