TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 257

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Treasury Chambers, Parliament Street. SWIP 3AG

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01-930 1234

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February, 1975

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Jac. Fecirolares of Stake

PS/ Lord formnwy - Robe E, or Wilford

Su Divatson

DEFENCE REVIEW: HONG KONG

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Thank you for sending me a copy of your letter of 11th February to the Foreign and Commonwealth Secretary.

We

I too am disappointed at the Governor's assessment of the maximum contribution he believes he can negotiate in Hong Kong. must nevertheless continue to aim at a contribution from Hong Kong of three-quarters of the cost of whatever level of garrison is finally agreed. But I recognise that some compromise may be necessary, and I do not rule out the possibility that we may eventually have to drop our demands a little. However, the first step is clearly the study of the security and political implications of a garrison costing about £35m, which you suggest. I hope that this study would not rule out the possibility of a lower cost still if this proved to be commensurate with a viable military capability able at least to fulfil the main tasks of deterring internal disorder and patrolling the border with China. Given our decision that the cost of any remaining non NATO commitments should be met within the agreed Defence Budget totals, we must clearly do all we can to minimise the total cost of the Hong Kong garrison as well as the proportion that is borne by the UK.

I also agree, without commitment at this stage, to the studies proposed in your fifth paragraph for bridging the financial gap between the UK and Hong Kong. I should like my officials to be involved in these studies.

I note and accept the proposed timetable for both the studies and the ensuing negotiations.

I am sending copies of this letter to the Prime Minister, our other colleagues on the Defence and Oversea Policy Committee and to Sir John Hunt.

DENIS HEALEY

The Rt. Hon. Roy Mason, MP. Secretary of State for Defence, Ministry of Defence, Main Building,

Whitehall, S.W.1.

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