SECRET

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for the plan to provide an element of

flexibility in response to developments

between now and 1997. The plan deliberately

focuses solely on Hong Kong related factors:

no account has been taken of external factors

such as SMG's regional defence interests in

connection with Nepal, Brunei, Korea and the

members of the Five Power Defence Arrangement

(although any of these may be affected by the

garrison withdrawal plan).

(c)

Threat:

Following the signature of the Joint

Declaration, no realistic external threat to

Hong Kong is posed by the PRC, the only power

traditionally assumed to do so. However,

prolonged instability in Hong Kong before

1997 might impel the Chinese to intervene

militarily to control the situation if IMG

seemed unable to do so. Such a situacion

would be disastrous for Hong Kong, and for

Sino-British co-operation over Hong Kong.

HMG considers that, provided the Police

expansion plan achieves its targets, the

REK?? will be able to control such internal

threats as can be identified, although it is

clearly possible that their capability to do

G.F. 316

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