32
APPENDICES TO THE MINUTES OF EVIDENCE TAKEN BEFORE THE
battalions (3 of them Gurkha battalions), an artillery regiment and an armoured reconnaissance squadron, engineers, a naval frigate and patrol craft, and an RAF helicopter squadron.
2. Following discussions at official level both Governments agreed that as an interim measure some reductions in the size of the garrison could be made under the terms of the existing agreement. It was accordingly announced in March 1975 that the garrison would be reduced by the withdrawal of the artillery regiment (less one battery) and the armoured reconnaissance squadron; and that economies would be made in locally enlisted and UK personnel of all 3 Services. At September 1975 prices the remaining garrison was estimated to cost about £50 million a year, compared with £65 million for the garrison before the Defence Review. Under the current five year financial agreement Hong Kong's contribution to the cost of the garrison amounts on average to about £81 million a year.
3. Further discussions between officials paved the way for high level negotiations between the two Governments in Hong Kong from 28 October-1st November 1975 in which the Minister of State for Defence represented HMG. In the course of the negotiations the Minister of State took the opportunity of explaining HMG's position to the Unofficial members of the Hong Kong Executive and Legislative Councils, as well as negotiating formally with the Governor and his advisers. The negotiations were based on the acceptance by both Governments of the need for a garrison capable of maintaining the security and integrity of Hong Kong and demonstrating HMG's continuing responsibility for the colony. The security needs of Hong Kong in present circumstances, and the forces required to meet them had already been the subject of thorough study jointly with the Hong Kong Government and agreement was reached in the negotiations that further savings were possible. The garrison will therefore be further reduced, by the withdrawal of an infantry battalion, the artillery battery and the frigate, leaving an agreed minimum garrison of 4 infantry battalions (3 of them Gurkha battalions), an engineer squadron, 5 naval patrol craft, and the RAF helicopter squadron. The total cost of this reduced garrison at September 1975 prices is estimated to be about £42 million a year.
4. The way in which the costs of the reduced garrison are to be shared between the two Governments after March 1976 was a major topic for discussion during the Minister of State's visit to Hong Kong. He explained the reasons why HMG believed that Hong Kong must in future bear a larger proportion of the cost of the garrison.
The Hong Kong Government for its part accepted that in a future agreement it would have to contribute a substantially higher proportion than in the past, but emphasised that present economic circumstances and planned social programmes placed limits on the amount which could be provided for defence. Further con- sideration is being given to this question, as well as to the possible release of further land occupied by the garrison but owned by Hong Kong, and to a number of technical financial matters. It is hoped that early resolution of these issues will permit a fuller announcement to be made before the end of the year.
Ministry of Defence.
7 November 1975.
Offices
APPENDIX 10
GREECE: ACCOMMODATION AND STAFF IN ATHENS (D.23)
Memorandum by the British Embassy Athens
1. The Chancery, Commercial Department, Consular Section and Administration Section are housed in a purpose-built PSA-owned building, completed in 1969, at Ploutarchou 1, Athens.
2. The Information Department has separate PSA-rented offices in an office block in Syntagma Square about half a mile from the main building.
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