Your Ref: D/SEC(O) (C) 6/7

Our Ref:

SECRET

Foreign & Commonwealth

Office

Date: 18 May 1993

HKA 063/1

17 MA¡ 1993

TES

Adion Take

London SWIA 2AH

Telephone: 071-

270-2655

BY FLASH TUBE

M L Howard Esq

SEC(O) (C)

Room 5314 Main Building MOD

Dean Mart

HONG KONG: FUTURE OF THE GARRISON

64

1. Thank you for your letter of 14 May enclosing a draft OPD (K) paper. I have discussed this with Mr Ricketts and Mr

Hum.

2.

In general we think the paper is a good one, but have a number of detailed comments.

i) I am not sure that this paper is the right place to raise the question of non-payment of the DCA (para 3) but if it must be raised then

1 we would prefer the following The Finance Committee of Legco effectively has a power of veto over any Government expenditure proposals. It is the Governor's judgement that unless it can be demonstrated that the costs of the garrison are declining sharply, there was a risk if Legco had been approached for the additional appropriations the entire DCA could have been called into question.

ii) We think that the potential risks of an earlier withdrawal might be spelled out in more detail. I have drafted a paragraph (enclosed) which could be fitted in before the military implications section, (and would therefore make the last sentence of paragraph 6 unnecessary).

iii) In the fourth sentence of para 4 replace 'responsibility' by 'remaining responsibilities'.

iv) I enclose paragraphs on the political handling covering perceptions in Hong Kong, as requested.

SECRET

65

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