DM. 147/326/01.
SECRET
(205)
(190)
Dear Charlton,
Hong Kong.
12th February 1958.
At their meeting on 5th February the Defence Committee invited the Chancellor of the Exchequer, in consultation with the Colonial Secretary and the Minis- ter of Defence, to consider whether some offer could be made to the Hong Kong Government in respect of the War Department land in the colony in return for their under- taking to meet the additional costs involved in any in- crease in the Army garrison over six major units.
2.
We propose to hold a meeting to consider this question; but as we know virtually nothing about the problem of War Department land in Hong Kong (to which we first saw reference in the draft Defence Committee paper circulated by the Minister of Defence on 1st January), it would be useful if the War Office could first let us have a background note of the present position. We should also welcome comments from the Colonial Office and the Ministry of Defence.
3. I am sending copies of this letter of Lawrence- Wilson (Ministry of Defence), Morrison (War Office) and Wallace (Colonial Office).
T.A.G. Charlton, Esq.,
Pagar loreee3
Whitehall,
S.W.L.
Yours sincerely,
I. de L. Radice.
Page 218
Mr. A. Campbell
Capy for secret record in the Department. Page 219 of 283
TOP SECRET
D. (58) 2nd Meeting
CABINET
Page 219.
COPY NO.
(20)°
+A
DEFENCE COMMITTEE
Extract from MINUTES of a Meeting held in the
Prime Minister's Room,
House of Commons, S.W.1., on
WEDNESDAY, 5th FEBRUARY, 1958, at 3.45 p.m.
2. HONG KONG: ARMY GARRISON
(Previous Reference: D. (57) 8th Meeting, Minute 1).
The Committee had before them a memorandum by the Minister of Defence (D. (58) 1) on the Army Garrison in Hong Kong.
THE MINISTER OF DEFENCE recalled that the Committee had already agreed in principle that the long-term Army garrison in Hong Kong should be limited to six major units. Subsequently it had been suggested that two additional artillery units, eventually destined for Malaya, should be temporarily stationed in Hong Kong, pending the provision of the necessary accommodation for them in Malaya. While there would be advantages in having these additional units in the Far East, the extra cost of stationing them in Hong Kong instead of in the United Kingdom would be about £250,000 a year for each unit. In addition, capital expenditure of about £100,000 would be necessary on their accommodation. This additional expenditure could not be met within the existing Defence Estimates and it would be unacceptable to make compensating reductions elsewhere. In view of the prosperity of the colony it was not unreasonable to expect the Hong Kong Government to meet these costs. These additional forces were required solely for the purpose of maintaining the confidence of the population of the colony. From this point of view it would be invaluable if the United States would give an assurance of military assistance in the event of an attack on Hong Kong by Communist China, comparable to their existing guarantee in respect of Formosa.
THE COLONIAL SECRETARY said that the Hong Kong Government already contributed £1 million a year towards the defence costs of the colony.
The new Governor had strongly endorsed the view of the former Governor that more than six units were required for the maintenance of confidence. It was unreasonable to expect the Hong Kong Government to increase their defence contribution when the British Forces in the area had been greatly reduced and in view of the heavy
wi Page 2 føBfnditure on refugees which they had to meet
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