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DRAFT PAPER FOR DOPC

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SECRET

DEFENCE REVIEW: HONG KONG

At their meeting on 9 September (CPD(74) 14th Meeting,

Item 3) the Committee took two decisions: that the future level

of our forces in Hong Kong should be reduced, on the basis that

an assured rapid reinforcement capability would not be maintained,

and that the Governor should be informed of the Government's

firm view that the Hong Kong Government should contribute not

less than three-quarters of the cost of the garrison.

2.

Discussions with the Governor have now taken place. This

paper seeks further guidance from the Committee on the form and

timing of the formal negotiations that must now be opened with

the Hong Kong Government.

Force levels and costs

3. The present garrison of Hong Kong consists of 1 frigate,

5 patrol craft, 6 teeth arm units (33 British) and 8 helicopters

and costs about £50M a year (Estimates 1975/76 prices). Follow-

ing the Committee's meeting on 9 september, the reduced garrison

has been defined in the further uiscussion with Hong Kong and

has been accepted by the Governor, in the light of military advice,

as a minimum requirement. It consists of 1 frigate, 3 patrol

craft, 53 teeth arm units (13 British), 8 helicopters and reduced

support. There is no assured rapid reinforcement capability.

costs about £40M a year (Estimates 1975/76 prices). Details are

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shown at Annex.

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Hong Kong's financial contribution: the Governor's attitude.

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The Governor's firm advice is that he could not recommend to

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the Executive and Legislative Councils, (or hope to carry through them, any proposal to contribute more than £17M a year (Estimates

1975/76 prices). Such a contribution would in cash terms be

about double the annual average contribution under the present

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