Background

CONFIDENTIAL

8.

The

reinforcement.

garrison in Hong Kong consists of 5 infantry battalions (four Gurkha and one British), Gurkha support units, five naval patrol craft and two squadrons of helicopters (one

RAF and one army). There i s provision for ad hoc short term

A new Defence Costs Agreement was signed in

October 1980 and came into effect in April 1981. It will run

for seven years initially, and will be renewable for further

periods of five years on the same terms unless varied. Hong

costs under the Agreement remain at 75%. The Garrison is commanded by Major General Boam, (CBF), who is

a member of EXCO. Naval Forces are commanded by Captain in Charge, Hong Kong.

Kong's contribution

9.

in

Decision to reduce garrison from 5 to 4 battalions

1987 and disband 2/7 Gurkha Rifles announced on 27 September.

Taken essentially to avoid costs of building a new barracks

(Kohima), which no longer justified. Public interest but

little obvious anxiety. Chinese, who had expressed

concern earlier about any

reduction, have said nothing to us

since the announcement.

s ome

10.

We and the MOD are beginning a study of the long term future of the garrison and the rate at which it should be wound

down between now and 30 June 1997. We are awaiting a Hong Kong

Government paper on

defence force/strengthened

an

police force that could

internal

tak e on

1997.

functions and continue after

in 1986.

some of the garrison's

Study will be put to OD(K)

11.

Defence is a subject

subject of considerable sensitivity for the

Chinese. They announced during the negotiations that they will base PLA troops in Hong Kong after 1 July 1997. They were not

prepared to agree to our proposal of an internal defence force during negotiations on the agreement, but they did not reject

it out of hand. Whatever decisions result from the CD (K) study

will need to be

be discussed with the Chinese, probably in the

Joint Liaison Group, before they are made public.

CONFIDENTIAL

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