SECRET
6 2/3rds major units to 5 1/3rds.
This
would bring the cost of the Garrison down to about £31m, instead of the present £4.2m. The Governor still does not think it would be possible to get the Hong Kong Govern- ment 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 flexibility. The Secretary of State may like to seek endorsement of their general approach, and agreement that there is no point in Ministers trying to take more detailed decisions at this stage.
SECHT
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