DEFENCE REVIEW:
SECRET UK EYES
DEFENCE AND OVERSEAS POLICY COMMITTEE
(Memorandum by S of S for Defence)
HONG KONG
DRAFT
1.
Following my report in February (1) to OPD colleagues
on discussions with the Governor and his advisers, we agreed
that in the light of the gap identified between the desired
level of Hong Kong contribution, and the lower figure thought
possible by the Governor, a study should be made of the
implications of a further reduction in the cost of the Garrison
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as a possible basis of a compromise agreement with Hong Kong.
My colleagues will also recall that in particular the Prime
Minister (2) expressed the view that our firm objective should
be to get Hong Kong to pay 75% of the total cost, as previously
agreed in OPD: but that if this proved impossible our negotiators
could agree ad referendum to a 50% contribution from Hong Kong
in the first year of a 5 or 7 year agreement, rising by stages
to 75% in the last year, or to any variation which would produce
The study of a reduetion in
a result no less favourable to us.
the garrison has now been completed, and there have been further
discussions with the Governor on the financial aspects.
2.
The Garrison.
The garrison which was the basis of the earlier discussions
with Hong Kong would cost about £M39 a year at 1975/76 estimates
prices (3) and includes 5 infantry battalions (4 of them Gurkha
Battalions), one squadron of engineers (with its Training Wing)
SECRET UK FYES A
/an artillery
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