$

4.

5.

DISCUSSIONS WITH CHINA ON SIZE AND ROLE OF HONG KONG GARRISON

PRESENT SIZE OF

GARRISON AND

DEFENCE COSTS

AGREEMENT

-2-

It is for HMG, in consultation

with the Hong Kong Government,

to determine the size and role

of the Hong Kong garrison

taking account of all the

relevant factors, including our ́

assessment of the internal and

external threats to the security

of Hong Kong.

· Under the Defence Costs

Agreement which came into effect

on 1 April 1976 and which runs

initially for 7 years, the

garrison consists of 4 infantry

battalions, an engineer

squadron, an RAF Wessex heli-

copter squadron and 5 naval

patrol craft. The Hong Kong

Government paid 50% of the

costs in 1976/77, will pay 621%

of the costs in the current

financial year end 75% there-

after. At LTC 77 prices the

garrison is estimated to cost

£50m a year.

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