TNAG-0439-FCO40-504-Ministerial-Visits-Committee-monthly-returns-from-Hong-Kong--1974 — Page 73

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SECRET

DEFENCE REVIEW

1. The annual cost to HMG of the forces presently stationed in

Hong Kong is 2m33.5 of which the Army element (63 teeth arm units

and support) accounts for £m25.3. In addition, under the 5 year

agreement signed in 1971, the Hong Kong Government contributes about

3m8.5 annually.

2. In its final report to the Defence Review Steering Committee,

the Defence Studies Working Farty recognised that, so long as

Hong Kong remains a British colony, a garrison will need to be

retained to act in support of internal security and to maintain

public confidence. The report quoted military advice to the effect

that the garrison could not be reduced substantially below its

present level: the Army element could, however, be reduced from

63 major units to 5, including Gurkhas, providing timely reinforements

are available.

3. At their meeting on 1 August, the Defence and Oversea Policy

Committee called for a study by mid-September of the minimum level

of forces required in Hong Kong and of what capability was necessary

for reinforcement. The study, which is now in hand will aim to

balance the costs of a smaller garrison with a reinforcement

capability against those of forces closer to the present level but

without such a capability, taking into account the wish of Ministers

that the cost of the garrison should be met by the Hong Kong

Government.

In support of this study, the Governor's advice has

been sought on these alternative force concepts and on the importance

of a reinforcement capability. He has been informed of the levels

referred to in paragraph 2 above and asked to comment on them and

to give his assessment of the size of forces for which the Hong Kong

Government would be prepared to pay.

The Governor's reply is not

1 SECRET