ABILITY TO WITHSTAND

DETERMINED ATTACK

The security of Hong Kong could be threatened by incidents falling short of the unlikely event of Q full-scale attack which we recognise could not be withstood by the

garrison. But this presence of the garrison, particularly along the border, acts as a deterent to border violations, and helps to prevent the escalation of minor

incidents.

REINFORCEMENT

POST-DEFENCE REVIEW

THE END OF THE LEASE

We shall still be able to reinforce the garrison if the need arises, but this is an operational matter on which I cannot go into details.

S

The New Territories leafe does not expire until 1997. It is not possible to predict what the circumstances will be so far in the future.

}

RELATIONS WITH CHINA

SIZE OF FUTURE GARRISON

AND FUTURE HONG KONG

CONTRIBUTION

WHEN WILL DECISIONS

BE ANNOUNCED

That is a matter for my Rt. Hon Friend the Foreign and Commonwealth

Secretary.

These matters are the subject of consultations with the Hong Kong Govt. and I cannot comment on them until consultations have been

completed. As the House will be aware we have said that we are seeking a greater contribution from Hong Kong in the successor to the present cost-sharing agreement.

There will of course be an

announcement when consultations

are complete but it is too early to say when this might be.

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