TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 67

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DEFENCE REVIEW: HONG KONG KONG

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The Defence Secretary sent me a copy of his mihute to you of 8 July about the Hong Kong Government's contribution towards the cost of the UK garrison.

2.

While I welcome the fact that it has been found possible to reduce the size of the garrison, I am afraid that I could not agree that we should be prepared to contemplate any arrango- ment which would result in our receiving a Hong Kong contribution of less than 75% of the cost from the outset. Since we Jaul considered this question in February, our economic circumstances which conditioned our approach to the Defence Review have deteriorated still further. We need more than ever to maximise the offsets to the burden of our defence expenditure. Moreovej it seems to me that Hong Kong should be well able to bear too greater part of the cost of her internal security, which the garrison is primarily there to maintain: 75% of the cost of a £33.5 million garrison is only some 1.2% of Hong Kong's GOP. And surely Hong Kong should be prepared to pay adequately for the essential contribution afforded by the garrison to the stability and confidence on which its prosperity depends.

3. In my view therefore we should seek a full 75% contribution from Hong Kong from 1 April next year. If there proved to be serious difficulties over this, I think we should need to look again at the size of the garrison Unless my colleagues are prepared to accept this view, we shall need to discuss this

matter in OPD.