5. Relations with the Chinese That is a matter for my rt hon Government.

6. Constitution.

7. Reinforcement after Defence Review.

8. Size of garrison.

9. Cost of garrison.

10. Hong Kong contribution.

11. Role of helicopters.

12. Local militia or

gendarmerie.

friend the Foreign and Commonwealth

Secretary.

We shall still be able to reinforce

the garrison should the need arise.

The garrison consists of five

infantry battalions, an artillery

regiment, a squadron each of

armoured cars and engineers, a

frigate and patrol boats, a squadron

of helicopters and appropriate

support. The total strength is about

10,000.

The present cost of the garrison

is about £40M a year at 1974 Survey

prices.

Under the present cost-sharing

agreement, which expires in 1976,

Hong Kong currently meets about

25% of the cost.

The helicopters provide the Army and

police with a degree of mobility

which the rugged and crowed naturc

of much of the Colony would otherwis:

preclude.

We do not consider that it would be

commensurate with our constitutional

/responsibilities

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