CODE 18.77
SECRET UK EYFS A
Reference
contribution rising from one half in the first year of a five
year agreement to three quarters at the end, or to any variation of this percentage pattern (eg. a level of about two thirds throughout the period) which would produce a result no less
favourable to HMG.
3. THE PRESENT SITUATION
The study of a further reduction in the cost of the future garrison was conducted by a working party set up for the purpose in Hong Kong, comprising representatives from British Forces Hong Kong, Hong Kong officials and the MOD, and chaired jointly by Deputy Commander Land Forces and the Security Secretary.
The working party's report has been forwarded through the Governor and CBFHK to SECCOS who has remitted it to ACDS (Pol) for study and submission to the Chiefs of Staff/. When the Chiefs of Staff have approved a military view on the report, this will be incorporated in a further submission to OPD which will seek final decisions on the force level, and the related financial guidelines, as the basis for substantive negotiations with Hong Kong in May.
4. The working party's report discusses the nature of the forseen threat to the security of Hong Kong and the composition and deployments of the various forces, both police and military, required to meet it. It identified those military forces which are seen as the essential bedrock of a viable military detterent, and examines various ways in which the garrison might be constructed around them. While the report does not recommend any particular option, it makes the point that the cost of the future garrison could be reduced (and the negotiating position would be consequently eased? if one of the infantry battalions required to meet the security threat were to be held outside Hong Kong but available for rapid reinforcement. This could be of some significance if Ministers endorse the proposal made ad referendum in the consultations with the Sultan of Brunei for a deferment of the withdrawal of the Gurkha battalion from Brunei until mid-1978 (which would be about the midpoint of a successor five year agreement on Hong Kong defence costs).
SECRET UK EYES A