CONFIDENTIAL AND PERSONAL

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FROM:

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DATE:

CC:

Security Policy Dept

27 July 1990'

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DEFENCE OPTIONS FOR CHANGE: THE GURKHAS

1. You will now have seen (FCO telnos 185-187 to UKDel NATO of 25 July) the text of the Defence Secretary's statement on Options for Change, and of the supplementaries prepared for use in the House of Commons. The Gurkhas were not mentioned in the statement, and the supplementaries in fact are limited to the statement that the position concerning the future of the Gurkha Brigade remains as stated by Mr Younger in the House of Commons in 1989.

2. There was nonetheless a certain amount of discussion of the future of the Gurkhas in consultations between the FCO and MOD in the run-up to the Defence Options announcement, which should perhaps be recorded.

3. On 18 July, the Defence Secretary told the Secretary of State at a private meeting that he foresaw no role for the Gurkhas after 1997. The Secretary of State said we would need to look very carefully at the undertakings which had been given. In subsequent briefing for Cabinet, we reminded FCO Ministers that the morale of our Gurkhas in Hong Kong could be fatally undermined by any suggestion that their future post-1997 was in jeopardy, and that it would be very difficult to find an equivalent and equally economical force for the Hong Kong task. We understand informally from the Cabinet Office that the question of the Gurkhas was raised by the Lord Privy Seal in OD Committee on 24 July. In this discussion, the Prime Minister spoke up in favour of the Gurkhas and said we would still need them. But when asked if it were a choice between chopping a UK regiment or

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