CO_1030_768_HONG_KONG_DEFENCE_CONTRIBUTIONS_1957_1958 — Page 79

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6

DEF45/51/02

Simplex

D. 6th May, 1957.

R. 6th

00

DE

12.45 hours.

PRIORITY

TOP SECRET

RESTRICTED CIRCULATION

No. 310.

Following personal for Macpherson.

Begins.

As you can imagine, I am considerably perturbed at the reduction in the size of the garrison, the contemplated closure of the Dockyard and the reductions in the Navy and R. A. F. I appreciate that these measures have been forced on Her Majesty's Government by considerations of finance and manpower. This prompts me to put forward in the following paragraphs a suggestion which I believe would meet both these points but which would at the same time bolster up our position here.

2. I believe that the future of certain major British Artillery units, which might be required as part of the long term forces in Malaya, is now under consideration and that, if retained, the units may be located in United Kingdom for the present on grounds of economy and lack of suitable accommodation in Malaya. As you know, we are to lose three of the four major Artillery units now stationed here under the Ministerial decision notified in Johnston's telegram No. 184. I am advised by C. B. F. that additional cost of maintaining three major Royal Artillery units in Hong Kong instead of in the United Kingdom (corrupt group)- roughly £500,000 per annum (i.e. movement, overseas and other allowances etc.). Accomodation and training facilities are already available here.

3 If this is correct, and the decision is made to retain the units, then I would be prepared to amend the proposal in my confidential despatch No. 671 for reducing Hong Kong's contribution towards the cost of reinforcing

the garrison from $16 to $1 million p. a. to the extent of making the reduction to 89 million only (£500,000 equals $8 million). In fact, so important do I consider the matter that I would be prepared to withdraw entirely the proposal in my despatch No. 671 if I could be assured that these Regiments could be located here for, say, the next three to five years.

Ends.

Distribution:-

Top Secret Automatic

plus

Mr. Carstairs

Mr. Campbell

Mr. Johnston

Ministry of Defence

Page 79Chiefs of Staff Secretariat)

Foreign Office

Commonwealth Relations Office War Office

(M.0.2.)

Col. CrolePage 79 of 85

Mr. P.G. F. Dalton Mr. G.D. Hampshire Col. A. F. McGill

1.

Tel. No. WHItehall 9400 Ext. 779

Part 580 of 85

ATIONAL

SCHEME

DISABLED

MEN

Cofyon DEF 75kater

SECRET

4504

Page 80 THE WAR OFFICE,

LONDON, S.W.1.

12 May, 1957.

Ashton

Dear Hennings,

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We were surprised to hear of a proposal from the Governor f Hong Kong to reduce the Hong Kong contribution from $16 to $1 million p.a.(para. 3 of H.K. Telegram 310 refers).

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If you would kindly refer to Mr. Charlton's letter to Mr. Johnston dated 20th April, 1957, so far from anticipating a reduction of the contribution, the Defence Committee has expressed the view that this contribution could be reasonably increased in the context of a permanent garrison of six major units.

The present $16 million contribution would in no way meet the extra cost of maintaining the long term garrison and we would like to know on what grounds the Governor has proposed a reduction. I have not seen a copy of his confidential despatch No. 671.

We also cannot agree with the estimate of £500,000 representing the extra cost of three major additional units. Our provisional estimate is that it would be in the order of £2 million pounds per annum.

Perhaps you will let me have your views in due course.

A copy of this goes to Phelps at the Treasury.

J. Pagionial office,

Hennings, Esq.,

LONDON, S.W.1.

Yours

onively,

CH. Pife Boof 85

SECRET

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age 81 of 85

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SCHEME

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FOR DISABLED

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1957

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FED 382/40/41 TS

Page 81 THE WAR OFFICE,

LONDON, S.W.1. 26th April, 1957.

16/Abroad/4071 (F.131

Y.

Dear Johnston,

R

Committee, at their meeting on

"Invited the Minister of State

You will remember that the Defence 27th February, 1957, in Conclusion (2): for Colonial Affairs to examine the possibility of increasing the contribution made by the Government of Hong Kong towards the cost of maintaining the British garrison in the Colony."

There had been general agreement in the Committee that in view of the prosperity of Hong Kong the Government of the Colony should contribute more towards the cost of the British forces, particularly as they were there primarily for local reasons. This agreement was expressed in the context of a permanent garrison of six major units.

We should be interested to know whether you have reached any preliminary conclusions as to how far the present contribution of £1 million a year might be increased. If it would help for us to supply you with estimates of the present (or probable future) costs of the Army garrison, we should be pleased to do so.

A copy of this goes to Radice at the Treasury.

Yours sincerely,

Pagehalten

(T. A. G. CHARLTON)

J. B. Johnston, Esq.

Colonial Office,

LONDON, S. W. 1.

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