The Rt. Hon. Michael Heseltine MP
President of the Board of Trade
COPY NO 3 of 15
SECRET
in Rachetts,
The Rt Hon Kenneth Clarke QC MP a as
Chancellor of the Exchequer
HM Treasury
Parliament Street
LONDON
SW1P 3AG
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21 December 1993
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2. Mr Golpettale Sp. Adin
Very! Mr Marriso
Enterpl. Lehetts
HONG KONG: THE FUTURE OF THE BRITISH GARRISON
22/12
Secretary of State
173
Department of Trade and Industry
Ashdown House 123 Victoria Street London SW1E 6RB
Direct line 071-215 4440
DTI Enquiries
HKA 063/663/1.
RECEIVED
30 DEC 1993
ESKO
USTRY
FEGISTRY
on Taken
12
I have been following your exchange of minutes with Douglas Hurd and Malcolm Rifkind about the future of the British garrison in Hong Kong, and the impact of the costs of the various alternatives for running-down the UK military presence which are under discussion.
Obviously I too share the importance of making savings wherever we can. But it seems to me that, especially in the light of the deterioration in UK/Chinese relations over constitutional reform in Hong Kong, the issues raised are no longer exclusively military or financial. I have been very impressed, as was Douglas Hurd, by the Governor's response to your alternative proposals for the run-down. I therefore strongly support what Douglas Hurd says in his minute to you of 1 December. Above all we must maintain confidence among the business community in Hong Kong in the interests both of the future of the territory and of UK interests there. This confidence would only be damaged by a public dispute over the timing of the run-down of the garrison, and perhaps even more by a dispute between the Governor and LegCo over financing the run-down.
I am copying this minute to other members of OPD (K) and to Sir Robin Butler.
Eu
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