i
2
hew passage cinculated by Im Hansford.
SECRET
WUK
UK EYES A
(d) The higher the proportion of the cost of the garrison
which IIMG required Hong Kong to pay, the greater the
degree of the UK's apparent withdrawal from responsibil
(a demand for a 100% Hong Kong contribution would be
held to imply complete abandonment by the UK of her
duty). Conversely the higher the proportion or the cos
paid by Hong Kong, the greater the 'say' the
'unofficials' would claim in determining the size and
character of the garrison and the standards to which it
should be maintained. Any proportion greater than
by them
one half would be regarded/as giving Hong Kong a majority decisive interest. This is a position which the
Governor for his part would not wish to arise.
(e) The presence of British forces was regardcã as of
economic value (costs going into the Hong Kong economy
average about £27M a year at beptember 1974 prices)
and as contributing to economic stability: the
presence of UK (as opposed to Gurkha) teeth arm units
was described by some as of particular significance
in this respect.
(f) on the other hand, it was felt by some
it was felt by some 'unofficials'
that the garrison is too large, or at least maintained
at too high a standard.
Hong Kong's budgetary position
[15.
The main features of Hong Kong's budgetary position were
described as follows by the Financial Secretary:
a) Very substantial budget deficits are forecast for
the three years 1976/77 - 1978/79, wii ch are treated
as "forecast years" in Hong Kong's budgetary planning
(and would also be the first three years to be covered
by the next Defence Contribution Agreement): the size
SECRET
YÜK EYES A
UK