75
SPORIT UK EYES A
ANNEX A TO COS 104756 (Continued)
£10M assumed under a 25% UK contribution would have to
be found within the severely reduced Defence Budget.
C. To reduce the size of the garrison still further.
The Governor proposes, reluctantly and very much as a
second-best, that, we should consider a further reduction
in the garrison to a cost of about £35M. The total
implications of such a garrison for the security of long
Kong would have to be studied. Linked to the proposed
Hong Kong contribution of £17M, the arrangement would
imply the UK paying more both in proportion (50% rather
than 25%) and in cash (£17M rather than £10M) than
Ministers' preferred option. On the other hand it would
not give Hong Kong a majority interest in defence matters
affecting the garrison. A variant of this option would be
to press the Hong Kong Government to pay three-quarters
of the cost of the reduced garrison, i.e. to raise their
contribution to £27M.
In
To cut the cost of the garrison to a point at which
a Hong Kong contribution of £17M would represent 75%.
capability this would fall far short of what is seen as
the minimum military requirement.
Whatever figure is fixed, the Governor would consider a
graduated contribution, with less paid in the early, more
difficult, years and more later to achieve the agreed average,
UK EYES A