TNAG-2239-FCO40-3218-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 7

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CONFIDENTIAL

attracting new businesses but it remains to be

seen whether success will be sustainable in the

longer term. RAF withdrawal from the airfield

would place a particularly heavy burden on the

Gibraltar Government.

8. The Future of the Gurkhas (Serial 5) has been

the subject of close consultation between the FCO

and MOD over several years. The MOD Options

paper, recommending the reduction in the Brigade.

to 2,500 men, is about to go to OPD. We are

content with this level of reduction and its

implications for Hong Kong, but not with any

proposal to abolish the Brigade altogether.

decision will, however, need careful presentation

whom

The

Discharged Gurkhas

to the Nepalese Government to okay the reduction

as this will come as a shock.

should be offered a suitably generous redundancy

package.

9. On the related issue of Gurkhas in Brunei

(Serial 6) z It is too soon to predict what the

situation will be after 1998. The decision on

whether to renew the agreement beyond 1998 cannot

be made until 1995/96. That will be a joint

FCO/MOD decision. If the Gurkhas were to be

withdrawn from Brunei, or their numbers

significantly reduced, this would have a profound

effect on UK relations with Brunei, and we would

need to handle the situation carefully.

CONFIDENTIAL