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DRAFT LETTER FROM SECRETARY OF STATE TO GOVERNOR OF HONG KONG mal version.

THE FUTURE OF THE GARRISON

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1. When we met in Hong Kong in January, we agreed it would be 12.

useful to set down the broad policy and operational framework underlying our detailed plans for the run-down and withdrawal of the military garrison, which are being reviewed this year.

2. I therefore enclose a short paper, which has been agreed by

the Chiefs of Staff, which addresses the role of the garrison;

how that relates to its minimum viable size; the manner and

timing of the final withdrawal; finance and the Defence Costs

Agreement; and public handling. The key judgement in the paper is the choice between retaining a garrison with a viable military

role, based around two infantry battalions, and one which would

be largely symbolic, based around a single battalion. I and my

Ministerial colleagues have considered carefully the case for reducing quickly to a symbolic presence, but have concluded that in the light of continuing uncertainty about relations with China in the immediate future, it would be prudent to plan on the basis

of a garrison centred on two battalions until 1996 as recommended

by the Chiefs of Staff. The reduction from three battalions to

two would take place in the latter half of 1994. It would be

helpful if you could confirm that you too are content to proceed

on this basis, on the understanding that we could return to the

more radical option for reduction to a single battalion if the

new negotiations with China over constitutional development lead

to a significant and durable improvement in our bilateral

relations with them.

3. I recognise that

that this also has to be seen against the

political problems you face over maintaining LEGCO support for meeting defence costs. I also recognise that resolving these difficulties will require further discussion and an exchange of ideas on the extent to which garrison costs can be reduced to

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