CONFIDENTIAL

A24. We expect to see a reduction in the costs of the garrison

between now and 1997.

Q25. How large will this reduction be?

A25. It is not possible to be precise because DCA payments

will be affected by many variables for example the precise

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timings of withdrawals; the timings of payments for

inflation rate and pay settlements.

Q26. How much does the DCA cost Hong Kong this year?

A26. This is a matter for the HKG.

Q27. And how much next year, now you have announced these

reductions?

A27. Hong Kong Government will present an estimate as part of the normal Budget process next January. The impact of these changes will take place over a period of time.

Impact of withdrawal plan on elements of the garrison

Q28. Effect of plans on UK servicemen/UK based civilians?

A28. The numbers in Hong Kong will decline gradually as

reductions occur in headquarters and support services.

Q29. Will UK servicemen leaving HK be made redundant?

A29. No. Some might in any case be part of the next phase of the Service's redundancy programmes, but this is not linked to

decisions on the garrison. Most will be re-employed in other jobs in UK or elsewhere.

CONFIDENTIAL

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