CONFIDENTIAL

4.

We intend in the near future to prepare for Ministerial

approval an outline plan for the Garrison reduction between now

and 1997. This plan will also serve as. an essential background

for the DCA renegotiations which will begin next year. It will,

of course, need to be based on the Hong Kong Government's own plan

for the expansion of RHKP, and the considerations set out in

para 3 above.

3

CONFIDENTIAL

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