2.

SECRET LOCSEN

The Chairman reminded members of the main purpose and Terms of Reference of the HKSC in general and of this meeting in particular:

a. To provide a forum to update members on developments in Hong Kong: especially those relating to the final withdrawal of the Garrison in 1997.

b.

To resolve policy issues that might arise between the formal Reviews of the Outline Withdrawal Plan.

C.

To consider specifically:

(1)

Exercise WINGED DRAGON 92.

(2) The Concept of 'Stronger for Longer'.

(3) The 1993 Review of The Hong Kong Garrison Outline Withdrawal Plan.

ITEM 2

POLITICAL UPDATE

3. The Chairman invited Mr Bunten, HK Dept FCO, to provide the political update. A summary is at Enclosure 1 and deals in particular with the

the FCO current perception of the PRC relationship with HK.

4.

Mr Bunten emphasized the increasing signs of uncertainty on the part of the Chinese in their dealings with

with HMG as 1997 draws closer. He also stated that on 7 Oct 92 the Governor would announce a far-reaching package of democratic reforms that would have important impacts on EXCO and LEGCO. reforms were aimed at the 1995 HK elections.

These

ITEM 3

HONG KONG VIEW

5. The Chairman invited CBF to provide the HK view and update. A summary is at Enclosure 2.

6.

CBF concluded by making the following points on perceptions of the Garrison in Hong Kong:

a.

Whilst it was inevitable that there were elements within the Hong Kong Government administration and the RHKP who would like to see the Garrison profile reduced. Relations with the Hong Kong Government were overall very good. The DCA issue was currently low profile.

b. The local population was grateful to the Garrison for its past contribution to countering illegal immigration and its current support to anti-smuggling operations. It also recognised the Garrison's work in the local community.

c.

The Garrison was held in high regard overall; CBF considered this sentiment had much

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