TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 6

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PS/Lord Goronwy- Roberts

Sir D Watson

Mr Wilford

Mr Sykes

Mr Male

Mr Thomson

Defence Dept

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Mr Andrew, AUSS, MOD

Mr Lansford, Treasury Mr Bryars, Cabinet Office

Copies to:-

Mr Aggleston, PSA

[TEXT] Personal for Governor

DEFENCE COSTS AGREEMENT: HONG KONG

1. Ministers have agreed that the garrison in long Kong can be reduced to one of four infantry battalions (one of them British) together with a Gurkha field squadron of combat enginners plus one training wing, one helicopter squadron and one frigate. This, at 1975/76 Estimates' prices, would cost £33.5m per year.

2. Ministers have also decided that, in view of the pressure on the Defence Budget, Hong Kong should be strongly pressed to pay 75% of the total from the outset of the new Agreement. In view of the importance G attach to this decision and of the difficulties of your own position, they have furthermore decided that the Minister of State for Defence, Mr William

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/Rodgers

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