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mind. We undertook when we last briefed the Chinese on withdrawal plans in April 1992 to quote continue to keep the Chinese side informed throughout the process of withdrawal of the garrison. Unquote.
5. On the withdrawal timetable, (your para 4), I understand that it is acquis in MOD that the Second Gurkha Battalion should withdraw in the autumn of 1994. But, as you say, this will not produce significant savings until the financial year 1994/95.
6.
The key issue therefore Looks to be finding shorter term savings. We fully understand your difficulty in securing LegCo support for the present level of garrison costs and the need to show a declining trend of those costs from the 1993/94 financial year if at all possible. We will certainly underline the need to face LegCo realities in any comment from the Foreign Secretary. But I doubt whether the FCO can be of much help in your discussions with MOD over payment of the 1992/93 DCA costs.
7.
On the specific proposals for cost-savings in your paragraph 7, I am sure you are right to establish much closer consultations between your officials and MOD over garrison costs.
over garrison costs. That is also likely to help you unearth examples of conspicuous consumption such as those listed in your paragraph 7(b). Sir T Daunt has offered to take up such specific cases with the MOD. If you can let us have any further examples we will pursue them.
8. On support costs (your para 7(c)) we understand from our working level contacts at the MOD that they are open to a hard Look at this area. Such installations as the RN hospital seem to
us to be worthy of scrutiny. Unaccompanied Service raises particular difficulties for the MOD given the extent of their present commitments which are necessarily unaccompanied (Northern Ireland, Bosnia etc). There are sensitivities in Parliament about extending this burden. I judge that this is an issue on which the Foreign Secretary would not wish to press the Defence Secretary.
9. I see no difficulty in exploring with the MOD the point in your paragraph 7(d) about detaching one Hong Kong-based battalion for duty overseas (although the question would arise whether to use the only UK Battalion in Hong Kong for that purpose, or a Gurkha Battalion which would presumbly be more difficult to deploy elsewhere). This does, however, raise the more
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