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Department
HKIOD
OUTWARD
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Security Clas
SECRET IMMEDIAT Precedence
tion
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PREAMBLE
UK-A
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SECRET
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PERSONAL
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Privacy Marking)..
(Codeword)
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IMMEDIATE
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HONG KONG (post)
PERSONAL
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Distribution:-
PS
SAVING TO (for info)..........
PS/Lord Goronwy- Roberts
Sir D Watson
Mr Wilford
Mr Sykes
Mr Male
Mr Thomson
Defence Dept
JWPD
Mr Andrew, AUSS, MOD
Mr Lansford, Treasury Mr Bryars, Cabinet Office
Copies to:-
Mr Aggleston, PSA
[TEXT] Personal for Governor
DEFENCE COSTS AGREEMENT: HONG KONG
1. Ministers have agreed that the garrison in long Kong can be reduced to one of four infantry battalions (one of them British) together with a Gurkha field squadron of combat enginners plus one training wing, one helicopter squadron and one frigate. This, at 1975/76 Estimates' prices, would cost £33.5m per year.
2. Ministers have also decided that, in view of the pressure on the Defence Budget, Hong Kong should be strongly pressed to pay 75% of the total from the outset of the new Agreement. In view of the importance G attach to this decision and of the difficulties of your own position, they have furthermore decided that the Minister of State for Defence, Mr William
SECRET UK-A
/Rodgers
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