TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 193

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ANNEX A TO COS 1401/130/1/2 (Concluded)

6. I should stress, however, that we would expect the Hong Kong Government to pay 5% of the actual cost over the 5 year period. The figure of £31M quoted has been produced on an

"annual average. cost" basis but I am setting in hand a detailed exercise to estimate the costs for the 5 years from 1976/77 onwards on a year by year basis, taking into account such planned changes as the introductic 1 of new patrol craft

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and the results of a detailed study by the Army Department and Land Forces Hong Kong on the implications of the newly agreed force level; the latter will not be completed before January 1975.

Council until May 75, ere was a general feeling that we could not avoid some reference to the proposed changes in force levels when we announce our Defence Review decisions as a whole in a White Paper, probably in March 75. As John Thomson will have told you we felt that the Governor should be consulted urgently about the implications of this for the timing and form of this first approach to the Executive Council.

8.

I am copying this letter to Howard Smith and John Thomson.

Attachment

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Breakdown of Costs (1 page)

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