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THE ARMED SERVICES AND AUXILIARY SERVICES

islands of Po Toi and Lamma. As a result of contacts with the local people, Royal Air Force personnel have been able to assist these island communities by undertaking projects to improve facilities in schools and villages. Sports facilities at the Royal Air Force Station at Kai Tak are frequently used by local children.

Throughout the year the Services have maintained a high standard of training and alertness and, jointly with the New Territories Administration and the police, they have steadily improved arrangements for the security of the border and other critical areas of Hong Kong and its waters.

In Britain, the Defence White Paper which was laid before Parliament on March 19, 1975 reaffirmed the United Kingdom's obligation to ensure the security of its dependent territories. It also said: 'In Hong Kong there will be some reductions in British servicemen and locally enlisted personnel; and we are seeking from the Hong Kong Government a larger share of the cost of our forces when the present cost- sharing agreement, which expires in 1976, is re-negotiated.'

In December, following protracted negotiations, the Hong Kong Government and the United Kingdom Government concluded a new Defence Costs Agreement which comes into effect on April 1, 1976. Under this agreement the garrison will comprise four infantry battalions (three of them Gurkha), a Gurkha engineering squadron, five naval patrol craft and an RAF helicopter squadron. The garrison will be reinforced should circumstances require it.

The agreement will run for seven years initially and will be reviewed for further periods of five years on the same terms unless either government wishes to vary them. The garrison is estimated to cost $450 million and the Hong Kong Government will meet 50 per cent of the cost in 1976-7, then 62 per cent in 1977-8, and 75 per cent in the third and succeeding years. These contributions will be adjusted for changes in price levels in Hong Kong and Britain. The agreement also provides for the release of about 250 acres of land occupied by the Services over the next four years. This land will revert to the Hong Kong Government.

Local Auxiliary Services

In addition to the regular forces, Hong Kong has two auxiliary service units- the Royal Hong Kong Regiment (The Volunteers) and the Royal Hong Kong Aux- iliary Air Force. These are administered by the Hong Kong Government but would come under the Commander British Forces and the appropriate Service commanders if called out.

The Royal Hong Kong Regiment numbers more than 700 volunteers and 51 permanent staff. It is a light reconnaissance regiment and, following a review of its role, is now made up of three reconnaissance squadrons, one infantry squadron, a headquarters squadron and a home guard squadron. There is also a junior leaders squadron of 135 boys between the ages of 14 and 17.

The regiment operates in support of the British Armed Forces in Hong Kong, in both internal security and reconnaissance roles.

The Royal Hong Kong Auxiliary Air Force is the only remaining operational auxiliary air force squadron in the Commonwealth. It is based at RAF Kai Tak

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