D/DS6/46/66/1
MAA LILU
Slatt
4 copies please
Azv
DEFENCE REVIEW, HONG KONG
1.
*
Ministers agreed, following a report by officials (Defence Secretary's letter of 11 Feb 75 to OPD colleagues) on discussions
with the Governor and his advisers, 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. They also agreed that while a Hong Kong contribution
of three-quarters remained a firm objective, negotiators could agree
ad referendum to a Hong Kong contribution rising from one half in
the first year of a five or seven year Agreement to three quarters
at the end, or to any variation which would produce a result
no less favourable (eg. a level of two thirds throughout the period).
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.
2. The Garrison
wave cosc-
The garrison which was the basis of the earlier discussions with Hong Kong eeets about £39m and includes 5 infantry battalions (4 of them Gurkha Battalions), one squadron of engineers (with its
Training Wing) an artillery battery, a helicopter squadron, a
frigate and three patrol
was conducted by a joint
craft. The study of a further reduction CUK/Hong Kong)
British Forces/Hong Kong Ccyt, working
party, whose report has been considered by the Chiefs of Staff.
The report suggests that, on the basis of the enrout internal security threat, the garisan should causes of a
-All of 1995/76
Estimate prices.
have 4 battalions,
231
some combat engineer capability, ten a helicoptes