SECRET
UK EYES A
C.
an overriding military necessity it would be indefensible to hang on to these central sites, which are badly needed for urban development in a crowded city, when the functions of the garrison can be performed elsewhere. We shall retain some discretion in the proposed working party to determine exactly what land is to be given up. We do not know to what use the land will be put by the Hong Kong Government; but there are inaications that at least part of the Victoria Barracks site may be turned into a much-needed park.
Should we have made public at this stage details of the revised garrison?
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It was necessary to do this for several reasons. The Hong Kong Government wanted to publish details of the reduced garrison to emphasise that it would cost less than the existing one. For our part there were strong military planning reasons for an announce-- ment as soon as possible to put an end to uncertainty
e.g. about the fate of the frigate. Given that we could say nothing about cost-sharing, it was desirable to include some substance in the public announcement to avoid the impression that nothing had been achieved. Moreover, it seemed desirable to get on public record what, on Chiefs of Staff advice, we believed to be the minimum garrison in order to resist pressures from whatever quarter for further reduction.
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D.
Has not the decision to keep the agreement "Secret" left us in a vulnerable position?
The Governor urged most strongly that the announcement of an agreement on cost-sharing would be premature and likely to provoke a hostile reaction in Hong Kong (where there was already much criticism of any increase ir. the Hong Kong contribution) thereby making it impossible to hold the Unofficial members of the Executive and Legislative Councils to the agreement. He asked for at least a month (and preferably longer) to prepare public opinion for the very sharp increase in the Hong Kong contribution. The choice was between an agreement which would have to remain "Secret" for some time and no agreement at all before the Minister of State left Hong Kong, in which case there would have been a danger of opinion haruening and making the task of subsequent agreement difficult. In the circumstances it seemed preferable to accept a "Secret" agreement. The line in Parliament and else- where will have to be that the Minister of State's visit to Hong Kong marked an important stage in the continuing process of negotiation Agreement was reached on some points, including the size of the garrison, and progress was made on others on which discussions are continuing. It is hoped that a final agreement will be concluded in the near future and certainly well before the current agreement expires next March.
A special problem will arise when the Defence and External Affairs Sub-Committee of the Expenditure Committee visit Hong Kong in a fortnight's time, since it will not have been possible by then to make a public announcement. The Minister of State is considering how to handle this and may wish to speak in confidence to the Chairman of the Sub-Committee before the visit takes place.
SECRET
UK EYES A