}
DRAFT
CONFIDENTTAI
DRAFT LETTER FROM CDS to CRFHK
Hong Kong Defence Costs Agreement
I was grateful for your letter of 5 May in
Evidently matters are
which you reported generally on the first year of the DCA and enclosed copies of your correspondence on this
subject with HE The Governor.
settling down well and it was particularly reassuring
that we are not to be faced, at least for a year,
with the formal review of the support elements which the Hor: Kong Government now has the right to request.
"
2. The contents of your letters have been brought to
the attention of those concerned in the MOD, who have been
invited to set in hand any follow-up action that may
be required. I will however comment briefly on
some particular points:
a.
Review of teeth-arm components.
There was some surprise here at the
suggestion that such a review right be desriable
in early 1978. In the final stage of
negotiation of the DCA, the Hong Kong
Governrent, as you may know, sought to include in the MOU a clause giving them the right of
review of all aspects of the garrison.
This was unacceptable to MOD as far as the teeth-
arm element was concerned,. as the force level
had been the subject of exhaustive study both
CONFIDENTIAL