TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 120

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219)

CONFIDENTIAL

18

Mr Cormack, Defence Dept.

DEFENCE WHITE PAPER

1.

From HKIOD's point of view, the problem about the draft White Paper enclosed with your minute of 26 November is that it proposes to go into detail on the defence cuts that will be made in Hong Kong. I doubt if we will be able to be specific about these by February. The present position is that, although we and MOD and Hong Kong have agreed on a probable level of forces, there is no agreement on who should pay for them in what proportions. It is not impossible that, if neither side will find the money, there may yet have to be further cuts. The Governor has asked for the definitive negotiations to be put back until May. There is now some opposition to this from the Treauery. But the Defence Review Sub-Committee did agree that this should be possible and that the Defence White Paper need be no obstacle.

2.

A

I would therefore suggest that, at least for the present, the draft White Paper should be re-worded as follows:

(a)

(Para. 10 a., first sentence)

but these forces will be reviewed in the negotiations for a new defence costs agreement with Hong Kong".

(b) (Para. 14 a., penultimate sentence)

"... and supporting units will be somewhat reduced following the

negotiation of an agreement with Hong Kong on the sharing of defence costs from 1976".

29 November 1974

ACSE

A C Stuart

Hong Kong & Indian Ocean Dept.

CONFIDENTIAL

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