0003160 G.F. 316

SECRET

ANNEX TO XCS(75)2

STATEMENT BY MINISTRY OF DEFENCE

Discussions are proceeding between the British Government

and the Hong Kong Government about the future force level appropriate for Hong Kong in the long term and its financing.

2

The outcome of these discussions will be announced in due course and embodied in a new defence costs agreement, which will run from 1st April 1976.

3

Meanwhile, all concerned are agreed that it will be safe to plan some early reductions in the level of the garrison. Accordingly certain units and individuals will be withdrawn during the next 18 months. These are

SECRET

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