SECRET

SECRET

UK EYES A

UK EYES A

A reduced garrison comprising 5 teeth arm units (including 4 Gurkha

units and 1 UK infantry battalion and 1 UK artillery battery), 1

frigate and 3 patrol craft, and 1 squadron of RAF Wessex helicopters,

and with no assured rapid reinforcement, had been proposed by CBF, with

the concurrence of the Governor, as the minimum force capable of dis-

charging the internal security task in Hong Kong and had been endorsed

by the Chiefs of Staff (1). The average annual cost of this force

(excluding extra costs, other than extra works costs, arising during

the transition from the present to the reduced garrison and the capital

cost of new naval patrol craft) is estimated at some £41M (September 1974

prices).

(b) The UK's contribution to the cost of the garrison

Ministers had decided in September 1974

(2)

that "the future level of

2

our forces in Hong Kong should be reduced but on the basis that a

reinforcement capability should not be maintained,

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 and his advice should be sought on whether it would be best to

ask initially for more with a view to compromising on 75% or whether it

would be better to put a proposal to the Executive Council which we

would not be ready to depart from". This decision implied a Hong Kong

contribution of about £30M towards the cost of the reduced garrison

leaving the balance of £10M to be found by the UK. Ministers also

(3) directed that examinations by officials should include the pos-

sibility that the Hong Kong contribution might not exceed 50%.

(c) Hong Kong's contribution to the cost of the garrison

The annual contribution made by Hong Kong during the current 1971-1976

COS Part II 29/74 Item 114

OPD(74)14th Mtg OPD(74)15th Mtg

3

SECRET

UK EYES

SECRET

CK EYES A

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