TNAG-0546-FCO40-641-Strength-of-garrison-in-Hong-Kong-1975 — Page 207

G.F. 323

CONFIDENTIAL #B 機密

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study both in Hong Kong and in London. The conclusion was that some further reduction could be made while still maintaining a garrison which was militarily adequate. These reductions would involve the removal of an infantry battalion, the remaining artillery battery, and one or other component of the Naval alement. The garrison would then comprise 4 infantry battalions (one of them, for military and political reasons, a British battalion), engineers, a frigate (although patrol craft may be preferred) and a helicopter squadron. At September 1975 prices, this would in 1976/77 cost about £44m or $470m HK dollars, towards which we are asking the Hong Kong Government to pay $350m, that is $1750m over a five. year period. The garrison costs have been rigorusly pruned and we have not included all the items for example, training, headquarters overheads and pensions which could be attributed to Hong Kong. Her Majesty's Government.

is satisfied that this level of forces is sufficient in present circumstances. The reductions will make available to Hong Kong valuable land currently used by the garrison.

In saying this, I can confirm that it will continue to be possible to reinforce Hong Kong from the UK. And, in agreeing that the garrison can be reduced to the level I have indicated, Ministers acknowledge the presence of a local reinforcement capability provided by the battalion stationed in Brunei.

There is a further point which I should make, and I hope you will not misunderstand me. There is a large measure of goodwill for Hong Kong in the United Kingdom. But, in the context of your defence contribution, the comparison is inevitably made between your flat rate of tax of 15% and our much higher rates; and between your contribution to defence of less than 8 of your G NP and ours of 58.

Against this background I believe that you would be endangering this goodwill if Hong Kong were unwilling to shoulder much the largest part of the cost of the garrison. The object of the proposal I have made is to adjust the respective financial burdens arising from the defence of Hong Kong so as to enable Her Majesty's Government to reaffirm her commitment to Hong Kong in a way which takes account of current economic realities.

So substantial and rapid an increase in your defence expenditure cannot be welcome to you. I realise it presents both budgetary and political difficulties. On the other hand, the British Government is convinced that if the goodwill and the consent of the British Parliamnent and public is to be retained for the British commitment in Hong Kong, such an adjustment must be made.

I hope I have made cur position clear to you, with the sort of plain speaking that is accepted among friends. An I am sure that nothing that comes out of our discussions will do anything to impair that friendship or the excellent relationship which I know exists between the Government, the Garrison and the population.

CONFIDENTIAL #

28th October 1975.

機密