UK ETES A
UK EYES A
7.
10M previously assumed would have to be found within the
severely reduced Defence Budget..
C. To reduce the size of the garrison still further.
The Governor proposes, reluctantly and very much as a
second-best, that we should consider a further reduction
in the garrison to a cost of about £35M. The total.
implications of such a garrison for the security of Hong
Kong would have to be studied. Linked to the proposed
Hong Kong contribution of f17M, the arrangement would
imply the UK paying more both in proportion (50% rather
than 25%) and in cash (£17M rather than £10M) than
Ministers' preferred option. On the other hand it would
not give long Kong a majority interest in defence matters
affecting the garrison. A variant of this option would be
to press the Hong Kong Government to pay three-quarters
of the cost of the reduced garrison, i.c. to raise their
contribution to £27M.
d. To cut the cost of the garrison to a point at which
a Hong Kong contribution of £17M would represent 75%. In
capability this would fall far short of what is seen as
the minimum military requirement.
Whatever figure is fixed, the Governor would consider a
graduated contribution, with less paid in the early, more
difficult, years and more later to achieve the agreed average.
SECRETE' UK EYES A
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