TNAG-0478-FCO40-543-Strength-of-garrison-in-Hong-Kong-1974 — Page 113

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costs of the present forces and the two main options could be included. In the second line of para. 6 "in Brunei" should be inserted after "Gurkha battalion". In mara. 16 (a), second line, "present arrison" should read "forces".

OBJECTIVES

7. The general objective at the Steering Committee should, I suggest, be to work towards acceptance of the Covernor's concept of a roughly 50/50 split, with a maximum Hong Kong contribution of 317 but with a further slight reduction in the level of forces in order to bring the total cost down to double 217 m, i.e. 234 m.

There should be some further informal consultation with the Governor about this further reduction, before the paper is finalised and Ministers are asked to decide what we should seek to achieve in formal negotiation with the Hong Kong Government (Cabinet Office agree). His British advisers are concerned at the speed

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at which Whitehall views on the financial aspects are being formulo, and time should be given for further consultation, even if Ministers consider Hong Kong in CPD at their next meeting on 9 september, (which is unlikely at present).

8. In this connexion:-

(a) The Governor should not be bullied into giving up the

frigate. The problem is that according to MCD there is nothing at present available to deal with the Chinese gunboats between the patrol craft, which are too shall, onl the frigate, which they regard as too expensive in the now financial circumstances. They argued on the Sub-Committee that alternative solutions, e.g. getting Hong Kong to pay for replacements for the patrol craft willch are already being specially designed, are too long-term to be of Sy use. We need not accept this; given the necessary determination, the frigate could remain as a temporary solution while a satisfactory long-term one was worked out;

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/(b)