6195 D073528 400M 2/74 Cr.P.C. 839/3

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Question 10

The Governor has been consulted at all stages of the

Sh Review. Formal consultations will be taking place between Her Majesty's Government and the Government

of Hong Kong. The outcome will be made public in

the context of the White Paper on the Defence Review

in March.

Question 11

The proposal to reduce the garrison was made bearing in mind both the current manpower and economic position in Britain and the minimum force level

necessary to meet the objectives of the garrison

in Hong Kong. The reduction is not to be interpreted in the light of Britain's relations with China. The arrangements for the proposed withdrawal of certain elements of the garrison are a matter for

discussion between governments but there will be no precipitate withdrawal.

Question 12

I am not unaware of Hong Kong's present economic

difficulties and I note with concern an increasing burden in supporting an expanding programme of social services. Britain, however, has her own

economic problems and we are asking the Hong Kong

authorities to meet the same order of defence

expenditure on her own behalf.

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