V:ན་འ ་པས
DRAFT
Page
SECRET UK EYES A
HONG KONG DEFENCE COSTS NEGOTIATIONS
BRIER A
(Revised 24 October)
OCTOBER 1975
STEERING BRIEF
30m
33m
17%
Background
1. Under the present 5-year agreement, which expires in
March 1976, Hong Kong agreed to pay a total of £40M towards
the cost of the British garrison. This total was increased
in 1974 by £2.5M to take account of inflation in works coats,
so that the total rate of annual payment may be regarded as
£8.5M. The garrison on which the agreement is based consista
of 63 army teeth units with administrative support and RN
and RAP elements. Hong Kong's share amounted to about 28%
of the total cost at the time the agreement was made.(now 17%)
As a result of the Defence Review and in accordance
with the policy of concentrating on our NATO commitments,
Ministers concluded that the garrison should be reduced and
the Hong Kong Covernment asked to pay a larger share of the
costs when the present agreement expires.
2.
This was announced
Ministero decided
in the Defence White Paper in March 1975.
that Hong Kong should be pressed to pay 75% of the cost of
a reduced garrison. This was originally to be based on
53 army teeth units costing £39M a year at 1974 prices; but
in the light of the Governor's advice that Hong Kong could
not be expected to pay of this cost it was agreed to
consider a further reduction in the garrison.
3
As a result of a joint study, a garrison based
on only 4 army teeth units (3 Gurkha Battalions and one
British Battalion) was accepted by the Chiefs of Staff as
a minimum, on the understanding that an additional Gurthe
Battalion from Brunei would be available for early reinforce.
#