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should be possible not only to do away with the present rein- forcement capability, but also to reduce the garrison from its 6rds major units to 5% rds. This would bring the cost
of the Garrison down to about £31m, instead of the present £42m. The Governor still does not think it would be possible to get the Hong Kong Government to pay as much as 75% of the cost of this reduced Garrison, but the package now begins to look like a viable one. A detailed financial examination of it is taking place and may provide scope for further flex- ibility. The Secretary of State may like to seek endorsement of this general approach and agreement that there is no point in Ministers. trying to take more detailed decisions at this stage.
Five Power Defence Arrangements
(paragraph 5(a) of the Cabinet paper and paragraph 12(c) of the Steering Brief)
18. Paragraph 5(a) of the draft Cabinet paper at present provides for us to leave no more than the 5-man contribution to the Integrated Air Defence System and to maintain our commitment to consult in the event of aggression if our part- ners so wished. This misrepresents the recommendations of the Steering Committee in OPD (74)23 on which Ministers said at their meeting on 18 September consultation briefs should be based, by suggesting that a decision to maintain our commit- ment to FPDA is dependent upon the further wishes of our partners. We know that they wish us to maintain our commitment, and OPD(74)23 recommends that we should do so.
19. The draft also ignores the Secretary of State's requests in his minute of 9 September that nothing should be done which would call in question the continuation of the consult- ative commitment and that our negotiator should be given some flexibility in considering specific requests from our allies for a small residual presence. The Secretary of State may
/wish
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