SECRET

Foreign and Commonwealth Office London SW1

A JH Ward Esq

DS6

Ministry of Defence

Telephone 01-

Your reference

Our reference

Date

19 February 1975

Dear Ward,

HONG KONG DEFENCE REVIEW:

1.

RUN-DOWN

I have discussed with Group Captain Clark the proposals in your paper on run-down outside the NATO area.

This proposes that the run-down of forces in Hong Kong should largely be completed by April 1976. I made the point that the present Defence Agreement does not expire until the end of March 1976 and provides that, if there is a reduction of more than one major unit during that period, there must be consultations and possibly a reduction in the Hong Kong contribution. Furthermore the reductions have not yet been agreed publicly or in private by the Hong Kong Government, and it is important that nothing should be said or done in public to begin the run-down until that agreement is complete.

2.

In fact, it is unlikely that, once the agreement is made, Hong Kong will object to most of the run-down taking place earlier than April 1976. This would reduce the transitional costs in the subsequent period for which, depending on the agreement, they might be required to pay. But I think it would be wise to clear our lines in advance with the officials of the Hong Kong Government with whom you will be discussing the proposed reduced force. This would ensure that proposals for earlier reductions would not take them by surprise. These discussions on run-down should not go beyond that group of officials. example, nothing must be said at this stage to Executive or Legislative Councils, since that would be tantamount to publication. But your team will have the opportunity to raise the matter in confidence during their visit to Hong Kong at the end of this month, and I think they should do so.

Yans ever,

Andrew Sha

A C Stuart

For

Hong Kong & Indian Ocean Dept.

CC

Group Captain Clark Defence Policy Staff (C)

MOD

Mr Jackson, Defence Dept. Mr Doble, Defence Dept.

SECRET

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