SECRET
Reference......
132)
Mr Jackson
DEFENCE REVIEW: HONG KONG
1.
As the telegram to the Governor has not gone off and since we have a breathing space while we await clearance from CDS, I wonder whether you would consider a few further changes as suggested in the attached reapaft? The point is that even if Ministers feel it necessary to announce that the Hong Kong garrison will be reduced to 5 battalions (and I concede that they may well wish to do this) it would not on the face of it be essential to announce at the same time how the cost of this reduced force would be split between Hong Kong and the UK. I can see that there might be speculation in Hong Kong, but if the Governor would prefer this to a certain row about the 75% contribution before the Budget is out of the way, then I think we should pay heed to his preference. It is not only in Hong Kong's interest to get the Budget agreed without trouble. The social programme is also very much in the interests of HMG. If, knowing what Ministers will have to say, the Governor still prefers to put off consultations on the percentage split of costs between Hong Kong and the UK, then we should continue to support him.
14 October 1974
CC
Mr Male
Mr Thomson
Sir D Watson
ACSE
A C Stuart
Hong Kong & Indian Ocean
Dept.
A
Page 195Page 196
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