TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 55

SECRET

UK EYES A

Mr Male

Sir D Watson

PS/Lord Goronwy-Roberts

PS

218

(208)

Flag

(215)

Flag B

(216)

Flag

Flag

(312)

DEFENCE REVIEW: HONG KONG

Problem

1.

In his minute of 8 July to the Prime Minister, the Defence

Secretary sets out his thoughts on the future of the Hong Kong

garrison. On advice from the Chiefs of Staff he recommends a minimum resident garrison of four battalions with some support units at a total cost of £33.5 million a year (September 1974 prices). He proposes that we should aim to get Hong Kong to pay a full 75% at the outset of the new Agreement in April next, but failing this that we should move to a graduated scheme by which Hong Kong's contribution should rise from 50% to 75% over a period

of up to seven years.

2.

The Prime Minister agrees with this approach but has suggested that the Secretary of State should send a personal message to the Governor stressing the importance of getting better terms and making the point that the garrison is otherwise vulnerable to further cuts. He has also asked whether a Minister (e.g. Mr Rodgers) should be sent to Hong Kong to negotiate on behalf of HMG.

The Chief Secretary to the Treasury does not agree to anything less than 75% from the outset and failing this, proposes a further reduction in the size of the garrison. I understand that Mr Mason believes there is now no alternative to discussing these matters at the DOPC meeting on 22 July.

Recommendations

3.

I recommend:

(a) that we should support the Defence Secretary's

proposals (on which, as he says, we have been consulted at official level and concur);

SECRET UK EYES A

/(b)