SE
D/DS1/303/10/9
PS/Minister of State
Copies to: PSO/CDS
PS/PUS
Sec/CNS
MA/CGS
PS/CAS
MA/VCDS
PS/DUS (P
ACDS(PO1)
SECCOS
AUS(D Staff)
DMO
DASD
Head of DS6
Head of DS8
Head of DS11
Head of F1 (Air)
CONFIDENTIAL
1408
Entér Mr Dammadahy
138
FCO - Mr O'KEEFE
DEFENCE REVIEW HONG KONG
1/
1. We spoke about your note of the meeting between Minister of State and the Governor of Hong Kong on 9 Apr.
2. In para 5, the size of the Hong Kong contribution has been described as £17m at 1974 Survey prices. This was our original understanding of the position, but at various meetings with both the Governor and Hong Kong Government officials, it has been made clear that the maximum contribution the Hong Kong Government could offer at the beginning of a new agreement would be £17m at September 74 prices. This price base is consistent with Estimates 75/76 and 75 Survey prices.
3. To try to eliminate this earlier confusion all the recent studies into the size of the Hong Kong garrison have been based not on 74 Survey (the defence review price base) but in 75/76 Estimate prices. The just-completed study into the implications of a £35m garrison was on the basis of 1975/6 estimates prices and the figure was first suggested as it was about double the proposed Hong Kong contribution of about £17m.
40 Lins 8 of para 5 should therefore read:
•
find £17m per annum (at September 74/Estimates 75/6 prices) was
4 Apr 75
CONFIDENTIAL
D G JONE DS1
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