TNAG-0536-FCO40-631-Strength-of-garrison-in-Hong-Kong-1975 — Page 63

i

2

hew passage cinculated by Im Hansford.

SECRET

WUK

UK EYES A

(d) The higher the proportion of the cost of the garrison

which IIMG required Hong Kong to pay, the greater the

degree of the UK's apparent withdrawal from responsibil

(a demand for a 100% Hong Kong contribution would be

held to imply complete abandonment by the UK of her

duty). Conversely the higher the proportion or the cos

paid by Hong Kong, the greater the 'say' the

'unofficials' would claim in determining the size and

character of the garrison and the standards to which it

should be maintained. Any proportion greater than

by them

one half would be regarded/as giving Hong Kong a majority decisive interest. This is a position which the

Governor for his part would not wish to arise.

(e) The presence of British forces was regardcã as of

economic value (costs going into the Hong Kong economy

average about £27M a year at beptember 1974 prices)

and as contributing to economic stability: the

presence of UK (as opposed to Gurkha) teeth arm units

was described by some as of particular significance

in this respect.

(f) on the other hand, it was felt by some

it was felt by some 'unofficials'

that the garrison is too large, or at least maintained

at too high a standard.

Hong Kong's budgetary position

[15.

The main features of Hong Kong's budgetary position were

described as follows by the Financial Secretary:

a) Very substantial budget deficits are forecast for

the three years 1976/77 - 1978/79, wii ch are treated

as "forecast years" in Hong Kong's budgetary planning

(and would also be the first three years to be covered

by the next Defence Contribution Agreement): the size

SECRET

YÜK EYES A

UK