DECRET ANI
J
Foreign and Commonwealth Office
His Excellency
Sir Murray MacLehose KCMG MBE
HONG KONG
Dear Muwing
DEFENCE REVIEW:
J
HONG KONG
London S.W.1
16 September 1974
103
Telegrams now
despatched P/A
Ar Dinviddy to see then
1. The Government have now decided that our forces in Hong Kong should be maintained at a somewhat reduced level but without a rapid reinforcement capability. This is the first hurdle cleared, since it involved abandoning the simple thesis that Hong Kong could have what it was prepared to pay for. Ministers also decided that the CBF should now be consulted officially, but confidentially.
2.
Aug
17/9
However, on the question of who should pay for these forces, Ministers have ruled that you should be informed of their firm view that the Hong Kong Government should contribute not less than three-quarters of the cost of the garrison and that your advice should be sought on whether it would be best to ask initially for more with a view to compromising on 75%, or whether it would be better to put a proposal to the Executive Council which we would not be ready to depart from.
3.
This means that your recommendation of a 50% philosophy has not prevailed. I am sorry about this. Part of the difficulty was that our own Secretary of State was not wholly convinced. We now have to consider the next moves. I think we have a bit of time. Hong Kong is not on the genda for the next Ministerial meeting, and if it is raised we need say no more than that you are being consulted.
4. I think CBF will now have to look even more critically at what is really needed for the internal defence of Hong Kong. If we can get the estimate down below £30 m., then your £17 m. would begin to look more credible, even within the 75% framework. Hitherto, the Ministry of Defence have been able largely to sit on the sidelines, implying that their function is to advise on the defence needs of Hong Kong, and that it is up to the FCO and the Treasury to argue about who will pay. Tt seems unlikely that there is not still some fat in the MOD estimates. Unless your £17 m. can be quite substantially increased, it seems that the alternative to cheaper forces will be still fewer of them. CBF should therefore probably
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