TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 52

CODE 18-77

SECRET UK EYES A

DRAFT

PS/Minister of State (through DUS(P))

Copy to: PSO/CDS

Sec/CNS

DMO

MA/CGS

DASD

PS/CAS

AUS(D Staff)

Head of DS6

MA/VCDS

Head of F1 (AF)

ACDS (Pol) SEC COS

DS1 (Mr Jones)

Reference

HONG KONG

1. The Minister of State may find it helpful to have some

background briefing

on him on 9 April.

BACKGROUND

when the Governor, Hong Kong, calls

2. You will recall that OPD decided last year that our forces in Hong Kong should be reduced and that Hong Kong should be asked to contribute not less than three quarters of the cost of the reduced garrison when the present defence costs agreement runs out in March 1976. Subsequent discussions in London and Hong Kong revealed a substantial gap between the maximum figure the Governor believed he could negotiate in Hong Kong (£17m) and three quarters (£30m) of the estimated cost (£40m) of the reduced garrison approved by the Chiefs of Staff which formed the basis of the

discussions with him. This position was reported to Ministers in February 1975, and they agreed that a study should be made of the security and political implications of further reduction to £35m or lower in the cost of the garrison, on the basis that such a garrison might form an element of a compromise agreement with Hong Kong when substantive negotiations took place in May 1975. On the related financial guidelines, the Prime Minister commented that, while the firm objective should be to get Hong Kong to pay three quarters, negotiat ors could agree ad referendum

to a

SECRET UK EYES A