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possibly also those in Hong Kong. But we believe, with the

vernor, that these risks can be managed and are outweighed by the need to avoid a damaging dispute between the Governor and

LEGCO over defence costs at a time when the Hong Kong government faces major political challenges; and the additional flexibility

to meet other military commitments that would result from

redeploying forces from Hong Kong. We therefore invite

colleagues to:

a.

Agree that the land element of the Hong Kong garrison

should be reduced by September 1994 to a core of a single effective infantry battalion, with the necessary support

services, in accordance with the broad timetable set out in

paragraph 7.

b. Note that this will lead to savings in the support area which will need to be quantified in detail, though the net

cost to HMG will almost certainly be substantial.

C.

Agree that further work should be carried out on:

(1) The re-inforcement plans for the garrison.

(2) Handling with the Chinese and public handling in

Hong Kong and in the UK.

PA/S/2.033

9

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MR

DH

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