?

SECRET

UK EYES A

ZOUK

implications of a £35M force

studies would be given by early February. 19A. CBF Hong Kong would be content to participate in a study laying out the, 20. The UK team undertook to report the Governor's views but

they observed that a 50% contribution by Hong Kong to the total

cost of a £35M garrison fell far below the figure of 75;%

deciued upon by UK Ministers. Graduation from a starting

proportion of 40% would impose a yet further penalty on the

Defence Budget in the years immediately ahead which xxx were

likely to be as difficult for the Ministry of Defence as for

Hong Kong.

Next ste+S

21.

(e)

OVERLEAF

to be amended in the light of discursion of the draft" DOPC разсл

NEXT STEPS

To hen

fatiol The provision of new

srift will be set wide for. separate consideration

The following action is now being initiated in the MOD:

(a) Trimming the estimated cost of the "reduced" garrison

and removing clements not attributable to Hong Kong.

possible adjustment's described. The matter, Fc-reate in paragraphs 8 and 9 are being

studied and the estimate of the cost of the garrison

:

amended

attributable to Hong Kong will be adjusted as appropriate,

(c)(b) The size and cost of

Without prejudice to

the garrison

the views of

the Chiefs of ot

any decisions which may be taren by;

provisionally fr

or Ministers, options will be/costea of a garrison costing

possibly

arm

about £35M including an all-Gurkha Army teeth/unit

Some

force) and/other preliminary work will be done to enable

of the implications and costs if the various options

a detailed study/to be undertaken quickly with CBF

Hong Kong

decide.

should the Chiefs of Staff and Ministers so

the

and

Hong Kong government

(a) The UK and Hong Kong contributions

>

A joint note by MOD, Treasury and FCO officials will be

prepared, in consultation with the Calinet Office, for

submission to Ministers, after clearance as appropriate

by the Chiefs of Staff and the Defence Review Steering

Committee. This will cover (a) (c) of this paragraph

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