TNAG-0617-FCO40-765-Strength-and-cost-of-UK-armed-forces-stationed-in-Hong-Kong-1977 — Page 118

CONFIDENTIAL

situation (including the reinforcement capability) was changed

markedly. Leaving aside for the moment the Brunei implications,

initial reactions here are that while a thorough reassessment

of the size and cost of the garrison as a whole will be necessary before the DCA falls due for renewal in 1983, so early a review

of the teeth-arm element is unlikely to serve any purpose. I

should be grateful for your own views as to why the Governor

should be thinking or seeking such a review next year.

b.

Provision to the Hong Kong Government of Details of

Manpower Adjustments,

This is agreed to be a reasonable price to pay for the avoidance

of an early review of the support element. However I am some-

what concerned by the statement in paragraph 10 of your letter

of 6 April to The Governor that "by the end of the financial

year 1978/79 it might be possible to achieve some real savings against the assessel Garrison personnel costs portrayed in the MOU".

There is a danger that in the course of time this comment might assume the status of a firm undertaking.

C. Locally Employed Civilians.

C

I note that in paragraph 6 of your letter of 6 April you say that you hope that NOD will find it possible to exclude Hong Kong from the incidence of arbitrary cuts which might bear on locally engaged civilian numbers. As you might expect, I am afraid that there can be no question of Hong Kong being

made a special case as far as reductions in IEC numbers are

concerned.

d.

Reinforcement.

HE The Governor's wish to be consulted before any change is

made in reinforcement capabilities has been brought to the

COMED

COLD DRENTIAL

/attention