CHURRY UN BED A

SECRET UK EYES A

from £17M in the first year (about half of the cost of a £35M

garrison and rather less than half of the cost of a £40M

garrison) to three-quarters of the cost at the end of the

period.

We could start negotiations on the basis of (a) above and work out

illustrative graduated schemes as at (b) above as a fall-back

position.

11.

To sum up, do Ministers agree that officials should prepare

a further report on the implications of a £35M garrison and also

proposals for guidelines as above in negotiations with the object

of reaching agreement with Hong Kong in May?

SECRET

UK EYES A

A- 6.

SECRET UK EYES A

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