SECRET

UK EYES 'A'

Do Ministers agree that we should start negotiations on the

basis of (a) above and work out illustrative graduated schemes

as at (b) above as a fall-back position?"

"12.

In the light of their decisions, do Ministers agree that

officials should prepare a further report on the implications

of a £35m garrison and make proposals for guidelines for

negotiations with the objective of reaching agreement with

Hong Kong in May?"

SECRET UK EYES 'A'

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