TNAG-0476-FCO40-541-Strength-of-garrison-in-Hong-Kong-1974 — Page 219

CONFIDENTIAL

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7.

(g

do we have any assets with which to bargain in the process of consultation?

For example, what line should we take about the disposal of real estate no longer required in Singapore?7

(h) what line should we take publicly between now and July?

No doubt there are several other questions or variants of the above question to which at any rate tentative answers need to be provided. It will greatly facilitate the conduct of the meeting and the rapid production of the paper if each Department would bring to the meeting a written list of the questions which it considers relevant to this exercise as far as its own responsibilities

go.

8.

After setting out the considerations relevant to the first four priorities (less AFSOUTH) the paper must go on to consider the fifth priority. This is of great importance because it is likely that much greater economies can be achieved under this heading than under the first four. For example, if we have no commitments in tropical territories there can be important consequential savings in the type of equipment and training that our forces require. If any remaining distant commitments do not require provision for urgent reinforcement there can perhaps be major savings in transport aircraft. Accordingly, the paper needs to discuss what our requirements are for flexibility in our forces outside NATO, for flag-showing, for a contribution to UN forces etc. This section of the paper will have to be handled mainly by Defence Department and can only be sensibly discussed in the light of the considerations relating to the first four priorities. In the course of drafting the paper Mr Smith and Defence Department will need to point out to Departments the implications for priority five of the considerations they put forward in connection with individual commitments.

9.

The paper should probably conclude with a section underlining the main points which have emerged from the detailed considerations set out in the body of the paper.

3 April 1974

CONFIDENTIAL

J A Thomson