TNAG-2674-FCO40-3871-Hong-Kong-garrison-withdrawal-plan-1993 — Page 12

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Tel at

SECRET

HKA 063/1

ES

8/26/3

2. MAR 1993

PA

T

Action Take

6348 Terace Brick

FROM P F Ricketts

Sir T Daunt

Hong Kong Department

DATE:

19 March 1993

minte bebu

CC:

&

PS/Mr Goodlad

Sir J Coles

Mr Hum

Mr Lever

Mr Callway, NPDD

C

D.

23

14.

HONG KONG:

THE GARRISON

1. You kindly offered to take up with the MOD the evidence from Hong Kong of conspicuous consumption by the garrison. We agreed at Mr Goodlad's office meeting earlier in the week that it would be useful to press ahead with this, even though the latest signs are that the MOD are thinking further about the possibility of early redeployment of some forces from Hong Kong.

2.

You will recall that the issue was first raised in a telegram from the Governor. I attach this, together with my submission of 10 March summarising the background; subsequent telegrams; and the MOD's draft paper seeking political agreement to a framework for the 1993 review of the garrison withdrawal plans. This paper awaits clearance by Mr Rifkind

(see para 4 below).

The key points we would like you to get across to the MOD (perhaps to VCDS?) are as follows:

3.

The FCO do not want to get involved with the MOD's discussions with the Hong Kong Government over the details of payments under the 1988 Defence Costs Agreement, although we think that it would be very useful if, as discussed between the Governor and Sir C France, there could be a more transparent dialogue between the two on garrison costs;

Hong Kong do have a real problem in securing the agreement of the Legislative Council for funding for the garrison. This is true despite Hong Kong's healthy overall economic situation. There is a perception in Hong Kong that the costs of the garrison

daunt 19.3MIN

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