CONFIDENTIAL
Background
Hong Kong: Talks with China
The sixth round of talks is taking place in Peking 23-25
June.
Airport (Not yet public knowledge)
In the Airport Committee meeting on 18 June, the Chinese agreed to the franchise for Western Harbour Crossing; made positive noises about the Central Reclamation project (but did not agree it at this meeting); and asked for an additional Hong Kong Government equity injection of HK$17.5 billion from reserves.
The Hong Kong Garrison (not for use)
Ministers have agreed that we should reduce the size of the Hong Kong Garrison to 2 battalions around June 1994 (with the withdrawal of the UK battalion) and to one battalion in September 1994 (when the two Gurkha battalions amalgamate); but the Cabinet have yet to endorse this recommendation.
We need to give the Chinese adequate advance warning of the decision before it is made public. The suggestion is that we should inform them in the JLG on 28 June and make the announcement around 19 July (before the Parliamentary recess).
CONFIDENTIAL
bkgd.NH/JRB