(HONG KONG: THE GARRISON)

SECRET

1.

2.

I agree with the advice and draft telegram.

But it does seem to be extraordinary that the "65% share", which Hong Kong think they are paying, of the full cost of the garrison amounts to more than the total cost of the garrison. I expect the MOD accountants would, if asked, produce arguments to justify this but I wonder how well-founded the arguments are. I think this point should be brought to the Secretary of State's attention when we submit on Mr Rifkind's letter.

3.

Subject to the Minister of State's views, I do not think we need to trouble the Secretary of State at this stage.

John Cole.

12 March 1993

Sir John Coles

CC:

Sir T Daunt

Mr Hum

Mr Lever

Mr Donnelly, NPDD Mr Davies, FED

SECRET

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