TNAG-0537-FCO40-632-Strength-of-garrison-in-Hong-Kong-1975 — Page 151

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Copy No. 31 of 40 copies

AUS(GS) 30/75

Reference

(D/D36

46/66/1)

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Head of D57 DS1 (Mr. Jones)

Col GB AJD2 SECCOS

HONG KONG: VISIT OF WHITEHALL TEAM 6 - 10 JANUARY 1975

At your meeting with HE The Governor of Hong Kong on 18 December 1974 it was decided that a small team representing the MOD, HM Treasury and the FCO at official level should visit Hong Kong in January 1975. It was to perform two tasks:-

(a) to explain to the Hong Kong Government in detail

the estimated costs of the "reduced" Hong Kong garrison (including 5% teeth arm units) which had been endorsed by the Chiefs of Staff and now provided a basis of provisional planning (a summary of these costs had already been made available to Hong Kong); and

(b) to establish the issues that must be resolved belore

negotiation of a successor to the current Hong Kong Derence Agreement could be completed and to identify any options that might be consiuered in this process.

2. (a) above was given importance by Ministers' view that Hong Kong's future contribution to the cost of her garrison should be expressed as a proportion of the whole: if Hong Kong Was to pay a percentage, she could cisim an interest in under- standing the make up and justification of the total. (b) was made necessary by the gap that then existed between the annual contribution that Ministers had decidea should be sought from Hong Kong (75 per cent of the cost of the "reuucea" garrison, i.e. some £30M) and the maximum sum wi.ich the Governor thought it reasonable for Hong Kong to pay (a doubling in cash terms of her present average annual payment, i.e. some £17M, though with allowance for inflation uuring the period of the new Agreement).

3. The visit took place on 6 10 January 1975. A copy of the report is encloseu. I suggest that you need not read the Annexes, which have seen included simply to complete the record.

H

4. The report indicates that the first task has been largely completed. Much information about the detail of the costing was made available to Hong Kong and many questions answered. regards the second task, the report's claims are more modest. The team was not empowered to negotiate on the UK contribution to the cost of the garrison; and during the discussion the Fong

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