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UPIL Comoron Roberts thisykes the Thousin
Wisson
Mr
AKTOD
Jon advin
LAST
k.
PRIME MINISTER
OPD
DEFENCE REVIEW: HONG KONG
(212) 219)
On 11th February 1975 I reported to OPD colleagues on discussions with the Governor and his advisers on the future level of the Hong Kong Government's contribution to the cost of the garrison. We agreed that, in the light of the gap identified between the desired level of Hong Kong contribution and the lower figure thought possible by the Governor, a study should be made of the implications of a further reduction in the cost of the garrison as a possible basis of a compromise Agreement with Hong Kong. You expressed the view that our firm objective should be to get Hong Kong to pay 75% of the total cost, as previously agreed in OPD: but that if this proved impossible, our negotiators could agree ad referendum to a 50% contribution from Hong Kong in the first year of a five or seven year Agreement, rising by stages to 75% in the last year, or to any variation which would produce a result no less favourable to us. The study of a reduction in the garrison has now been completed, and there have been further discussions with the Governor on the financial aspects.
The Garrison
2. The garrison which was the basis of the earlier discussions with Hong Kong would cost about £39M a year at 1975/6 Estimates prices and includes five Infantry battalions (four of them Gurkha Battalions), one squadron of Gurkha engineers (with its Training Wing), an artillery battery, a helicopter squadron,
a frigate and three patrol craft. The study of a further reduction was conducted by a joint United Kingdom/Hong Kong Government Working Party, whose report has been considered by the Chiefs of Staff. The Report suggests that a resident garrison of four battalions, some combat engineer capability, a helicopter squadron and a Naval presence would be the absolute minimum and would be inadequate in
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