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REPORT OF JOINT WORKING PARTY SET UP TO
STUDY THE IMPLICATIONS OF RESTRICTING THE HONG KONG GARRISON TO AN ANNUAL COST OF £35M AT ESTIMATES
1975/76 PRICES
INTRODUCTION
1.
The average annual cost of the preferred reduced garrison in Hong Kong has been estimated to be £40M (1) at Estimates 1975/76 prices (2). Assuming only a 25% contribution by HMG, there is a shortfall of £13M between this sum and the amount which HE The Governor considers could be Hong Kong's maximum contribution (£17M). Faced with this budgetary gap, HE The Governor has reluctantly proposed that the feasibility of a garrison costing £35M pa at Estimates 1975/76 prices should be considered and the political and security implications of such a garrison identified. An examination on these lines has been agreed by United Kingdom Ministers.
2. The terms of reference for the joint United Kingdom/Hong Kong Working Party carrying out this study are to consider and report the possible composition, and the security and political implications, of a garrison costing £35M at Estimates 1975/76 prices. If any practical solution within this or a lower financial limit can be recommended the Working Party is to report any related action, eg by the Royal Hong Kong Police, that would be involved.
(1) The figure of £40M per annum does not include the cost of the frigate refit and the new patrol craft. An average of £41M, inclusive of these items, was provided as a basis for Working Party discussions. Both figures exclude transitional costs in 1976/7 only of £3m.
(2) Estimates 1975/76 prices are those prices current in September 1974.
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