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Mr

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Sir TDaunt

Mr Lever

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Mr Donnelly, NPDD

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FCS/93/230

CHANCELLOR OF THE EXCHEQUER

063/1.

р.а.

HONG KONG: THE FUTURE OF THE BRITISH GARRISON

063

RECEN

ISTRY

I wrote to you on 19 November to say that I proposez to seek the Governor's views on your new proposal for the HopISTRY Kong Garrison. I enclose his response.

INDLX

Action Taken

2. In my view, the Governor puts forward decisive arguments against your proposal. I agree that it would be damaging to

our authority in Hong Kong, and a propaganda gift to the Chinese, if it became apparent that we were trying to extract

extra funds from Hong Kong to pay for a more expensive

garrison than Hong Kong needed.

3. Malcolm Rifkind could pursue your proposal through the

established channel with the Hong Kong Government. But unless some way could be found to avoid burdening Hong Kong with the

extra costs, the Governor's message makes plain what the

response would be. I would be strongly opposed to pushing the Governor on this to the point where a constitutional crisis

with LegCo became a possibility. We will have enough problems administering Hong Kong over the next three and a half years

without that.

4. I am copying this minute to other members of OPD (K) and

to Sir Robin Butler.

Foreign and Commonwealth Office

1 December 1993

(DOUGLAS FURD)

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