TNAG-0536-FCO40-631-Strength-of-garrison-in-Hong-Kong-1975 — Page 52

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Exchequer from income tax paid by the forces in

Hong Kong as a possible abatement of the Hong Kong

share. But this sum (put at about £14M a year) is

likely to be more than offset by other not readily

qualifiable elements omitted from the figure of

£40, e.g. UK training and support costs and allowances for pension.7

1 further reduction i

(c) Gutting the size of the garrison and splitting its

Serate heads.

to lawat

cost.

Comprar proposes, reluctantly and very much as a

W.

le conside this situation the The Governor believes that the Councils would accept

EVİVOA costing about £35M and including perhaps

teeth arm units, (to which Hong Kong would

Then He agasi

this

contribute-617 Despite the military penalty, he

would !ts.

too might be prepared to accept a reduced garrison

of this-size, though as very much a second best

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option, The military implications of such a garrison

for to securits of Hay Kas this to the proposed how long would have to be studied. But the arrangement would cantadan at Alym

,

cy 7m

imply the UK paying more both in proportion (50%

rather than 25%) and in cash (£17M rather than

£10 M) than the Committee envisaged in their

discussion on 9th September. As under (b), the

onneral Sisure

difference £35M over an Agreement lasting 5 years)

would have to be found within the reduced Defence

Budget. On the other hand it wouldnot give Hong

Kong a majority interest' in defence matters

affecting the garrison.

The Governor would be prepared to consider a

graduated contribution, with less paid in the early,

more difficult years and more paid later to achieve

whatever average contribution is agreed. But he is

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