SECRET
UK EYES A
DRAFT DOPC PAPER
DEFENCE REVIEW: HONG KONG
At their meeting on 9 September (OPD(74) 14th Meeting,
Item 3), Ministers decided that our forces in Hong Kong should
be reuuced and maintained without an assured rapid reinforcement
capability, and that Hong Kong should be asked to contribute
not less than three quarters of the cost of the smaller garrison.
At their further meeting on 18 september (OPD(74) 15th Meeting)
they directed that officials should prepare briefs on that basis
but should also examine the possibility that Hong Kong's share
of the cost would not exceed one half. Officials have accordingly
held meetings with the Governor and his official advisers in
Hong Kong and London.
Timing of an Agreement
2. It will be difficult for the Hong Kong Government, which
is now heavily involved in the 1975/76 budget, to complete
negotiations on a new Defence Agreement until about May. The
Agreement would enter into force in April 1976 when the present
one expires.
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Force levels and costs.
3. The present garrison consists of 63 teeth-arm units/
battalions.
prices).
The cost is about £50M a year (Estimates 1975/76
Military advice is that in the present internal and
external circumstances of Hong Kong the force could be reduced
to about 5 units, without a rapid reinforcement capability. The revised cost would be about £40M a year (stimates 1975/76
prices). Details are at Annex.
.40
The Governor of Hong Kong agrees in principle with this
level of forces, and the discussions have revealed no substantial
disagreement on estimates, apart from the possibility of
excluding transitional costs of the run-down (about £2.7M) in
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UK EYES A