L

LE

106998

MO 6/19/1J

PRIME MINISTER

SECRET

SECRETARY OF STATE

HKD

Ca

PS

157

PS/Mr Goodlat

PS/ Pus

Chief Clerk Sir J. Coles M Hum

Mr Byamen,

Advice pl. HKA

1900. 1993

Mr

Muir

RFD

NPDD

Planners

News

Special Advisers LH 12/10.

愛比園

HONG KONG: THE FUTURE OF THE BRITISH GARRISON

In my minute of 7th July, I commented on the Chancellor's proposals (his minute of 29th June) for varying the implementation of our plans to reduce the Hong Kong garrison from those proposed to OPDK. In particular, I agreed that officials should cost his proposal that, from April 1995, a UK battalion should take over the infantry component of the garrison from the Gurkha battalion, and that the latter would disband.

2.

I understand that our officials have now completed this work,

and have concluded that this proposal would save some £30m over the period 1994/95 to 1997/98 compared with the proposals put to OPDk. Given the current pressures on the Defence Budget, I do not underestimate the importance of such a saving. On the other hand, as I explained in my minute, to proceed in this way would carry major penalties in regard to the overall availability of infantry, the administration of the Gurkha rundown, and our relationship with

the Hong Kong Government. On this latter point, the Governor of Hong Kong has discussed with me more than once the severe problems

he faces with LEGCO over military costs: he has no reserve powers to

override a LEGCO rejection of estimates to meet his Government's

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