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square boundary and the harbour waters of the colony.

The garrison consists of five infantry battalions (four Gurkha and one British), support units, five naval patrol craft and two squadrons of helicopters. There is provision for ad hoc short term reinforcement.

A new Defence Costs Agreement was signed in October 1980 and came into effect in April 1981. will run for seven years initially, and will be renewable for further periods of five years on the same terms unless varied. Hong Kong's contributions remains at 75% but a new, comprehensive system of accounting for costs has been introduced which, in effect, has increased Hong Kong's share by more than 50%. Part of this reflects an enlargement of the garrison by one infantry battalion.

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