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minimum necessary for the maintenance of internal security, and to maintain local confidence, including a show of force on the frontier. A calculated risk that an emergency demanding evacuation will not arise has to be run. In point of fact the Chiefs of Staff appear to have doubts as to whether the forces provided are adequate even for the functions indicated. Thus in August 1957 the Chiefs of staff, after a meeting with the Governor of Hong Kong, indicated that "our financial position will not allow us to maintain forces at adequate levels", and again in the same month during the course of reviewing U.K. strategy in the Far East they said (64th Meeting on the 6th August 1957) "We support Governor in his view that in the short term the locating of two Artillery Regiments in Hong Kong until accommodation is available in Malaya would have a most valuable psychological effect and would help to maintain internal security."
HONG KONG'S PROPOSALS.
4. The proposal to increase the garrison by two artillery units which form part of the long-term Order of Battle in alays, but for which accommodation will not be available for five years, was made by Sir Alexander Grantham, was supported by C.B. F., Hong Kong, and has been repeated by the new Covernor ("the presence of the two additional units is of the utmost importance to Hong Kong") (Annex B). It is supported by the Secretary of State for War and the Foreign Secretary. The only point outstanding is that of cost. This is .250,000 each per armum, plus £100,000 capital expenditure in accommodation, as stated in paragraph 2 of D.(58) 1.
5.
The Covernor's difficulty in meeting this cost is that it would be looked upon as an attempt to increase his present defence contribution of am. at a time when the garrison was in fact being reduced. The unreceptive attitude of the unofficials in Hong Kong to this is influenced by the fact that the Colony has been left to bear, unaided by H.M. G., the burden of resettling 700,000 refugees. In the circumstances, the Governor does not think that he can maintain his present defence contribution, let alone increase it. The contribution for this year has not yet been paid.
6. Sir Alexander Grantham has made proposals which might have some attraction for the unofficials (Annex C). They covered four lots of land occupied by the Navy in the dockyard area which are still regarded by the War Office as War Office land. The Navy would evacuate this land on the closure of the dockyard, and the Governor's proposal was that if the War Office was prepared to relinquish its claims over it to the Hong Kong Government the latter would maintain a defence contribution of am. for the next five years and, in addition, would pay half the additional cost of maintaining the two additional units for the same period, Page 222 of 283
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