TNAG-1592-FCO40-2177-Appointment-of-Sir-David-Wilson-as-new-Governor-of-Hong-Kong-1987 — Page 142

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3. It is generally agreed that further reductions in the

Garrison must await an RHKP presence on the Border, although

the level of that presence which would permit a further battalion

reduction is open to consideration. But the timings for moving

from four battalions in 1990 to none in 1997 will be determined

by a number of factors, in particular:

a.

Capability of the RHKP. Under the agreement with

the People Republic of China (PRC) on the future of Hong

Kong, HMG remains responsible for the administration of

Hong Kong, including its internal security, until 1997. It

is clearly essential not least in order to maintain good

relations with the PRC - that we have the capability to

exercise this responsibility to the full. An expanded

RHKP may eventually be able to maintain internal security

without military support (it will certainly have to after

1997), but HMG may require a greater degree of insurance

while it remains responsible for the colony, in a period

that towards the end could be marked by heightened tensions.

b. Cost. The Hong Kong Government is becoming increasingly

cost conscious, partly as a result of growing political

awareness in Hong Kong.

c.

Future of the Brigade of Gurkhas. From the point of

view of the Defence Budget, it is highly cost-effective to

station Gurkha battalions in Hong Kong where the Hong Kong

Government pays 75% of costs. Reductions in the Garrison will

need to be carried out in the light of decisions on the future

of the Brigade as a whole, bearing in mind Ministers' commit-

ment that there will continue to be a role for the Gurkhas

in the British Army after 1997.

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CONFIDENTIAL