GOVERMENT HOUSE HONG KONG.

WED 14 APR 93 09:48

PG.17

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WE ARE ALREADY IN TOUCH WITH HQBF ON THIS MUST CHANGE. THIS AND SIR CHRISTOPHER FRANCE ACCEPTED, WHEN I MET HIM ON 23 FEBRUARY, THAT THE MOD NEEDED TO PROVIDE US WITH FAR MORE DETAIL ABOUT THE SCALE OF THE GARRISON'S ACTIVITIES AND DETAILS OF ITS FUNDING. WE WILL BE PUTTING SPECIFIC SUGGESTIONS TO MOD FOR MORE RECULAR CONSULTATIONS BETWEEN THE MOD AND HONG KONG GOVERNMENT OFFICIALS TO FOLLOW UP SIR CHRISTOPHER FRANCE'S PROPOSAL FOR IMPROVED COMMUNICATIONS.

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(3) THE NEED FOR THIS IS HIGHLIGHTED BY TWO EXAMPLES. YEAR THERE WERE 700 OFFICIAL MOD VISITS TO HONG KONG. COMPARES WITH ABOUT 100 FROM ALL OTHER BRITISH GOVERNMENT

WE HAVE ALSO JUST FOUND OUT THAT HQBF DEPARTMENTS PUT TOGETHER.

WE HAVE ASKED

HAVE ORDERED 168 NEW CARS FOR THE GARRISON. QUESTIONS ABOUT BOTH THESE POINTS BEFORE WE PAY THE 4TH QUARTER INVOICE. WE IMAGINE THAT THE MOD (AND MAYBE THE PUBLIC ACCOUNTS COMMITTEE) WILL ALSO WANT SATISFACTORY ANSWERS.

(C) A HARD LOOK NEEDS TO BE TAKEN AT THE SUPPORT COSTS OF THE

SIR CHRISTOPHER FRANCE GARRISON WHICH AMOUNT TO 50 PERCENT. ARGUED THAT CUTS IN SUPPORT FACILITIES ALWAYS TAKE TIME TO REGISTER. BUT ONE OBVIOUS POSSIBILITY, WHICH WOULD RESULT IN MAJOR SAVINGS, WOULD BE FOR THE MILITARY HERE TO MOVE TO UNACCOMPANIED TERMS. THIS IS FORESEEN I BELIEVE IN THE LAST SIX

COULD IT NOT HAPPEN MUCH MONTHS OF BRITISH ADMINISTRATION. SOONER?

(D) ANOTHER POSSIBILITY WHICH I SUGGEST SHOULD BE CONSIDERED IS THE USE OF ONE BATTALION ON DUTIES OVERSEAS, WOULD IT BE POSSIBLE FOR EXAMPLE TO MAKE SOME OF OUR CONTRIBUTION TO UN

WHEN FORCES ARE OVERSEAS, HKG IS NOT FORCES FROM THE GARRISON? REQUIRED TO PAY FOR THEM.

8. AN UNPALATABLE FACT WE MUST FACE IS THAT EVEN IF ALL OF THESE POSSIBLE MEANS OF ACHIEVING CUTS WERE INTRODUCED, THEY WOULD BE UNLIKELY TO BRING ABOUT SIGNIFICANT DECREASES IN ACTUAL EXPENDITURE UNTIL 1994/95. WE WOULD THEREFORE RUN THE RISK THAT, ONCE ANY CARRY-OVER FROM 1992/93 HAD BEEN SETTLED, THE BALANCE REMAINING IN THE ESTIMATES FOR 1993/94 WOULD NOT BE ENOUGH TO SETTLE HONG KONG'S SHARE OF GARRISON EXPENDITURE AS CURRENTLY PLANNED FOR THAT YEAR. RETURNING TO LEGCO FOR SUPPLEMENTARY PROVISION WOULD RISK DEFEAT. A WAY MUST THEREFORE BE FOUND -IN CONSULTATION WITH THE MOD- TO SMOOTH OUT THE PLANNED FLOW OF EXPENDITURE UNTIL THE SAVINGS WE WILL BE SEEKING START TO BITE IN 1994/95.

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9. I SHOULD VERY MUCH WELCOME FCO VIEWS ON ALL OF THIS. TO THOSE, I INTEND TO WRITE TO MR RIFKIND TO FOLLOW UP MY DISCUSSIONS WITH HIM IN JANUARY. I WILL OF COURSE COPY MY LETTER TO THE FCO AND IF YOU WERE ABLE TO CHIP IN YOUR SUPPORT THAT WOULD BE VERY HELPFUL. I ALSO HOPE THAT SIR T DAUNT AND THE DEFENCE SIDE OF THE OFFICE, AND HKD, CAN BE FULLY INVOLVED IN THE MOD REVIEW PROCESS. MAINTAINING SUPPORT FOR THE BRITISH MILITARY PRESENCE HERE OVER THE COMING YEARS IS NOT GOING TO BE EASY.

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