4-

c) Overseas Students' Fees:

Garrison

17.

Regrettable that need to cut

public spending in 1980-81 raised difficulties for

Hong Kong students.

Garrison currently consists of 5 Infantry batallions

(4 Gurkha, 1 British), Gurkha engineers, 5 RN patrol craft, a

squadron of RAF Wessex helicopters, a squadron of Army Scout

helicopters and support elements.

18. Garrison demonstrates HMG's commitment to integrity and

security of Hong Kong. No problem with China over its presence.

Role to assist the Hong Kong Government and support police in

maintenance of law and order within the Territory and on its

frontiers, to assist in disaster relief, to maintain confidence

and to deter incursions or aggression. Much of its time is

currently spent in cooperation with the police in dealing with

the problem of illegal immigration from China which in 1979-80

caused it to be severely overstretched.

disturbances.

19. Main threat to Hong Kong Garrison is internal security

These could be complicated by the influx of large

numbers of illegal immigrants from China. China not regarded

external threat at present or in conceivable future.

Defence Costs Agreement (DCA)

20. Garrison is subject of Defence Costs Agreement (DCA). New

DCA signed in October 1980 between HMG and Hong Kong Government

to run for 7 years from 1 April 1981. Hong Kong Government contri-

butes 75% of costs. Total cost 1981-82 approximately £150 million

of which HMG's share is approximately £38 million.

/21.

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