D/DS6/46/66/1
SECRET UK EYES A
SEORUR EYES A
"M
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
The garrison which was the basis of the earlier discussions
with Hong Kong costs 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 craft. The study of a further reduction UK/Hong Kong was conducted by a joint (Eritish Forces/Hong Kong Govt,) working
party, whose report has been considered by the Chiefs of Staff.
The report confirms the earlier military assessment of the need for 5 infantry battalions, to cope with the "worst case" internal
security threat; some combat engineer capability, fa a helicopter
SECRET UK EYES AL