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CONFIDENTIAL

civil and military, required to meet it was given the most

The thorough study both in Hong Kong and in London.

conclusion was that some further reduction could be made while

still maintaining a garrison which was militarily adequate.

These reductions would involve the removal of an infantry

battalion, the remaining artillery battery, and one or other

component of the Naval element. The garrison would then

comprise 4 infantry battalions (one of them, for military and political reasons, a British battalion), engineers, a frigate

(although patrol craft may be preferred) and a helicopter

squadron. At September 1975 prices, this would in 1976/77

cost about £44m or $470m HK dollars, towards which we are

asking the Hong Kong Government to pay $350m, that is

$1750m over a five year period. The garrison costs have been

rigorously pruned and we have not included all the items

for example, training, headquarters overheads and pensions

which could be attributed to Hong Kong. Her Majesty's

Government is satisfied that this level of forces is

sufficient in present circumstances. The reductions will make

available to Hong Kong valuable land currently used by the

garrison.

In saying this, I can confirm that it will continue to

be possible to reinforce Hong Kong from the UK. And, in

agreeing that the garrison can be reduced to the level I have

indicated, Ministers acknowledge the presence of a local

reinforcement capability provided by the battalion stationed

in Brunei.

/There

page 5.

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