TNAG-0617-FCO40-765-Strength-and-cost-of-UK-armed-forces-stationed-in-Hong-Kong-1977 — Page 133

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DRAFT

CONFIDENTTAI

DRAFT LETTER FROM CDS to CRFHK

Hong Kong Defence Costs Agreement

I was grateful for your letter of 5 May in

Evidently matters are

which you reported generally on the first year of the DCA and enclosed copies of your correspondence on this

subject with HE The Governor.

settling down well and it was particularly reassuring

that we are not to be faced, at least for a year,

with the formal review of the support elements which the Hor: Kong Government now has the right to request.

"

2. The contents of your letters have been brought to

the attention of those concerned in the MOD, who have been

invited to set in hand any follow-up action that may

be required. I will however comment briefly on

some particular points:

a.

Review of teeth-arm components.

There was some surprise here at the

suggestion that such a review right be desriable

in early 1978. In the final stage of

negotiation of the DCA, the Hong Kong

Governrent, as you may know, sought to include in the MOU a clause giving them the right of

review of all aspects of the garrison.

This was unacceptable to MOD as far as the teeth-

arm element was concerned,. as the force level

had been the subject of exhaustive study both

CONFIDENTIAL