SECRET UK EYES A
AIM
DP Note 212/75(Final) (Continued)
2. To comment on the Hong Kong Working Party Report and to recommend the force level to be used in the forthcoming negotiations on a Hong Kong Defence Agreement.
NEW FACTOR S
3. Since the Working Party completed the study there have been four developments:
a. The Governor of Hong Kong, in discussion with the Minister of State for Defence (6) reiterated, that his previous assessment that Hong Kong might be able to find £17M per annum was optimistic and he implied that £17M was the maximum which Hong Kong would be prepared to pay in 1976/77. The possibility of reducing the garrison so that this £17M represented 50% of the total annual cost was therefore discussed and the presentational advantage of this was noted. The Governor also indicated his belief that it might be possible for Hong Kong to bear a steadily increasing percentage of costs in future years.
b. The Defence Budget has come and is continuing to come under heavy pressure. This makes it imperative to reduce the costs of the non-NATO commitments. The Foreign and Commonwealth Secretary has advised the Governor that Hong Kong would need to find more money to cover the costs of the garrison or else go short
(7).
Co The estimated costs of various units have been reassessed and some savings found (8). A summary of the revised costs is at Annex A.
Notes:
6.
7.
8.
D/MIN/WR/8/7 of 10 April 1975. Record of Conversation
Foreign Secretary/Governor of Hong Kong
at FCO on Friday 11 April 1975. D/DS1/303/10/9 of 8 April 1975.
2
Manga
تنقلة
A