TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 117

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

DECRET

obtained therefrom is irreplaceable and that withdrawal would

provide another bone of contention. Our approach to them

should therefore be exploratory. We must then be ready to

indicate ways in which we think a decision to withdraw might

be used to promote a settlement.

Assuming the Americans can be persuaded to agree to

our withdrawal, we should present our intention to withdraw

to the parties concerned as being conditional on a settlement

and in the context of progress towards the demilitarisation

of the island. We would suggest that, by promoting

discussion about the future of the SBAs, we hope to bring

them together for negotiations about the future of the

island as a whole.

HONG KONG

5.

The Governor has recommended that since any new

arrangements would not take effect until April 1976 (when

the present Defence Agreement expires), formal consultations

with Hong Kong's Executive Council should not start until

May 1975. He also advises that discussions on the 1975/76

Hong Kong Budget about increases to finance the enlarged

social welfare programme should be got out of the way first.

We have been in close touch with the Governor and are satisfied

that what he proposes is the best way to handle the Hong Kong

consultations.

6.

It should be possible not only to do away with the

SECRET:

/present

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