CONFIDENTIAL
relationship between the UK and China, it might then be worthwhile. to revive the more radical rundown option. The Governor's judgement would be the single most important factor.
He was
4. Governor Patten said that the more radical option did indeed deserve consideration. However, he acknowledged that this could have a certain political resonance. Over the next two or three months, it would be necessary to see how discussions with China went. The garrison had both a symbolic and a practical importance. The patrol boats were particularly important in anti-smuggling operations. In the event of civil disorder, there would be a support role. Though Ministers would not want to see Gurkhas on the streets, they could be used on the border to release police. not sure whether as many battalions were required as currently planned, or whether Hong Kong would cope with single battalion plus rapid reinforcements as necessary. Sir Christopher France had said that this would be difficult to do. He could see the force of the arguments. However, the option was worth considering, particularly if big savings could not be generated otherwise. There needed to be a radical examination of garrison support costs; in any activity, the administrative tail always seemed to cost 50%! The Chinese were said to show a "beady-eyed interest" in the size of the garrison. However, they were incomparably more interested in the Defence Lands issue. He hoped that that issue could be resolved quickly if there were progress on the political front. The outcome would not be as we wanted, but there was little point in haggling, since they would the get lot 1997 anyway.
5.
Asked for an update on the progress of the talks, the Governor said that this was the second time the Chinese had backed down. However, the UK must not crow. The Chinese very much wanted the talks. The cynical view was that this was because they disapproved of settling issues through the Legislative Council; or because it would enable them to spin things out while the UK's proposals frayed at the edges. More positively, the continuing dispute would be a "boring distraction" from showing that they were respectable members of the international community. Hong Kong was seen as a touch-stone for their behaviour elsewhere. People such as those in their Foreign Ministry wished to do a deal. The Secretary of State commented that Governor Patten had achieved a great deal by turning Hong Kong into an issue of international importance, so that it was news, for example, in the United States.
6. Governor Patten said that opinion in Hong Kong remained reasonably robust. The polls showed a two to one level of support, which was reasonable, though lower than before. People got bored. There was also a certain nervousness in the business community, including corporations such as GEC and Cable and Wireless. MOD had been very helpful. Indeed, the UK Government as a whole had been very supportive. The really important thing was that the discussions with China were on the basis of the Governor's agenda. On costs, he was totally dependent on the Legislative Council. was an "executive-led government". There was no way round this
This
CONFIDENTIAL