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Genuine negotiations: the British view
The outcome of genuine, tough negotiations. Not an
imposed settlement. Must ask Hong Kong public to
consider other side of equation. UK defence budget
is coming under increasing pressure. It has
declined by 6% in real terms since 1986 and could
well decline further in real terms in coming years.
Yet UK's worldwide defence commitments have not been
reduced.
DCA has thus imposed difficult decisions on HMG.
Importance of concession by HMG should not be
under-estimated.
Cost of improvement in Hong
Kong's position is about the same as cost of
re-equipping a tank regiment or cost of a
fully-equipped modern warship.
But Hong Kong has to expand local services
Savings on DCA more than balance cost of expanding
local services.
Understand there will be
considerable net savings to local taxpayer, even
after extra spending on police and auxiliary air
force.
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