TNAG-0537-FCO40-632-Strength-of-garrison-in-Hong-Kong-1975 — Page 27

SECRET

UK JYES A

ANNEX A TO COS 1010/756 (Continued)

This would have the advantage, from Hong Kong's point of view,

of avoiding too sudden an increase in the cost to them of a

reduced force.

Questions for consideration

8.

Ministers are, therefore, asked whether they agree that a

study should now be made with Hong Kong Officials of the

implications of a garrison costing about £35M, on the basis that

such a garrison might form an element of a compromise agreement

with Hong Kong.

9.

But, whether such a garrison were acceptable or not, there

will still be a gap between Ministers' desire that Hong Kong

should pay three-quarters of the cost and the Governor's figure

of £17M, which would be about half the cost of a £35M garrison

and rather less than half the cost of the £40M garrison.

10.

The first question therefore is do Ministers consider

that, if we do not succeed in getting Hong Kong to bear three-

quarters of the cost an attempt should be made to bridge the gap

from both ends? There are two possible ways of bridging the

gap:

a.

Lo increase both the UK and llong Kong offers, c.

to one-third and two-thirds of the cost (12M and £23M

respectively for a £35M force, or £13M and £27M for a

£40M force) or;

A -- 5

UR EYES A