TNAG-0537-FCO40-632-Strength-of-garrison-in-Hong-Kong-1975 — Page 158

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Kong, and also whether part of the cost of the Gurkha L of C (relating to the

battalion stationed in the UK) should be treated similarly. But it was

accepted that reductions on this account would be unlikely to exceed £0.4M.

Cutting further the size and cost of the garrison

11.

The UK team were not authorised to put forward alternatives to the

"reduced" garrison (5 teeth arm units), which had been endorsed by the

Chiefs of Staff. During the formal sessions there was, however, general

discussion, in which the detailed costings of the "reduced" garrison were

drawn upon, of the possible financial, military and other implications of

garrisons smaller than the "reduced" garrison, including various mixes of

Army and Naval units that might make up garrisons costing around £35M or

£30M a year, including a possible all-Gurkha teeth-arm force.

The UK contribution

12. The UK team were not authorised to discuss any increase of the UK

contribution beyond 25%. The Hong Kong team, however, referred to the value

of UK income tax paid by British and Gurkha forces in Hong Kong, put by CBF

HK at very roughly £1M a year for the reduced garrison, as a factor which UK

Ministers might take into account in reconsidering their views on the size of

the UK contribution, They accepted, however, that this revenue was not in

relief of the Defence Budget and also that the costing of the garrison

excluded certain elements which might reasonably be attributed to Hong Kong,

eg a share of pension costs, of UK training and support costs and of capital

depreciation of equipment. They did not dispute that medical, education and

other welfare costs included in the costing of the garrison could not be

regarded as implying any identifiable savings in the costs of civil social

service programmes in the UK. The Hong Kong representatives contended that

it would not be reasonable for the Hong Kong Government to bear any propor-

tion of the extra costs arising during the period of transition from the

6

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