[

PY

5.

PRESENT SIZE OF GARRISON AND DEFENCE COSTS AGREEMENT

Play

pod 50%

of the tub w the

your

in

109

Current puanca 2 82/1/2/%

45% hereette

6.

/

POSSIBLE REVIEW OF

DCA

sum confident that the ACA remains in the best interests of the bir And Hong Kong Evils'

Under the Defence Costs Agreement

which came into effect on 1 April

1976 and which will runs initially

for 7 years, the garrison consists

of 4 infantry battalions, an

engineer squadron and its training

wing, an RAF Wessex helicopter

squadron and 5 naval patrol craft. The Hong Kong Government a pay

Will

621% of the costs in the current

financial

fäl year and 75% thereafter

5% thereafter.

Phe new Agreement represents

substantial increase in Hong Kong's

contribution and I do not believe

ne†

Any body

' that it would be in interests to

reopen negotiationsfat me present time

OTHER DEFENCE COMMITMENTS IN FAR EAST

7. FIVE POWER DEFENCE

8.

ARRANGEMENTS (FPDA)

BRUNEI

rimi]

We maintain a consultative commitment

to the external defence of Singapore

and Malaysia under the Five Power

Defence Arrangements (to which

Singapore, Malaysia, Australia, New Zealand and UK are party); and we

make a small manpower contribution

to the Integrated Air Defence System.

We are continuing our discussions

with the Government of Brunei on cur

proposals for withdrawing the Gurkha

battalion at present stationed there

-2-

Page 105Page 106

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