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FROM: PF Ricketts
41
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Hong Kong Department
7 April 1993
DATE:
CC:
Sir J Coles
Action Taker
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Sir T Daunt
Mr Lever
Mr Callway, NPDD
Mr Gomersall, SecPol Dept
HONG KONG: THE GARRISON
1.
The Governor is concerned about the cost of the garrison in Hong Kong. Discussion of this issue has prompted some in the MOD to ask whether there should be a rapid run-down in the size of the garrison, to free up forces for use, eg in peacekeeping activities elsewhere. The Secretary of State might wish to know where matters stand in advance of his meeting with the Governor on 16 April. The Governor will have met the Defence Secretary on 15 April, and may want to up-date the Secretary of State at their office meeting.
2.
The background is that the Hong Kong Government are facing a mounting problem in securing support from the Legislative Council for the 65% share of the full cost of the garrison
which they pay. There is a widespread perception in Hong Kong that the costs of the garrison should be falling, since it no longer takes on day to day operational duties, particularly on land (the Hong Kong police have taken over guarding the border). But on present plans, there will be little decline in the cost of the garrison until FY 94/95. The issue of garrison costs came to a head late last year when (for reasons disputed between HKG and the MOD) Hong Kong found that it did not have enough money in the estimates for FY 1992/93 to meet their obligations to the MOD. The Governor made clear to the Defence Secretary that going back to LegCo for further funds would simply open up the whole issue of the costs of the garrison. The MOD has now agreed to deferred payment of some of their bill. But the whole exercise showed up the lack of
SECRET