SECRET
UK EYES A
Mr Male
Sir D Watson
PS/Lord Goronwy-Roberts
PS
218
(208)
Flag
(215)
Flag B
(216)
Flag
Flag
(312)
DEFENCE REVIEW: HONG KONG
Problem
1.
In his minute of 8 July to the Prime Minister, the Defence
Secretary sets out his thoughts on the future of the Hong Kong
garrison. On advice from the Chiefs of Staff he recommends a minimum resident garrison of four battalions with some support units at a total cost of £33.5 million a year (September 1974 prices). He proposes that we should aim to get Hong Kong to pay a full 75% at the outset of the new Agreement in April next, but failing this that we should move to a graduated scheme by which Hong Kong's contribution should rise from 50% to 75% over a period
of up to seven years.
2.
The Prime Minister agrees with this approach but has suggested that the Secretary of State should send a personal message to the Governor stressing the importance of getting better terms and making the point that the garrison is otherwise vulnerable to further cuts. He has also asked whether a Minister (e.g. Mr Rodgers) should be sent to Hong Kong to negotiate on behalf of HMG.
The Chief Secretary to the Treasury does not agree to anything less than 75% from the outset and failing this, proposes a further reduction in the size of the garrison. I understand that Mr Mason believes there is now no alternative to discussing these matters at the DOPC meeting on 22 July.
Recommendations
3.
I recommend:
(a) that we should support the Defence Secretary's
proposals (on which, as he says, we have been consulted at official level and concur);
SECRET UK EYES A
/(b)