TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 136

SECRET

Reference...................................................

Mr Cormack, Defence Dept.

DEFENCE REVIEW:

1.

CONSULTATION WITH THE AMERICANS

In reply to your minute of 28 October and Mr Jackson's of 25 October, I suggest that the speaking note and brief for consultations with the Americans on Hong Kong should be combined. I am not sure who is to do the speaking but I suggest he should say:.

"We intend to maintain the defence of Hong Kong, as well as the intelligence gathering facilities in the Colony. We have reassessed the necessary size of forces. We believe there is at present little danger of invasion from China, and in any case this is not a threat which we could, realistically, prepare to meet. The real purpose of the Hong Kong garrison is to deal with any possible internal disorder. We believe that this will require a level of forces somewhat, but not much, smaller than the present 63 major units. [Not to be disclosed: Our present judgment is that the garrison should be 53 major units.] This is important not only in its military role but also for the maintenance of confidence in our intentions towards Hong Kong.

Under the present Defence Agreement, which will expire in March 1976, the Hong Kong Government pay about £81 m. annually to the cost of the forces. We intend to negotiate a new agreement which, when the present one expires, will involve a substantially larger contribution, both proportionately and absolutely, from. Hong Kong. But we cannot yet say how much that contribution will be.

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31 October 1974

CC

Mr Thomson

Sir D Watson

Mr Male

SECRET

Dest

A C Stuart

Hong Kong & Indian Ocean

Dept.