TNAG-2674-FCO40-3871-Hong-Kong-garrison-withdrawal-plan-1993 — Page 48

171O4OZ

LNMDAN 6369

ECRET

ADVANCED HD/HKD FOR DISTBN ADVICE HMLNAN 0939

17/3

17103OZ FCOLN

FM HOKON TO FCOLN

170955Z MAR

GRS 342

SECRET

FM HONG KONG

TO DESKBY 171030Z FCO

TELNO 429

OF 170955Z MARCH 93

INFO IMMEDIATE PEKING, UKREP JLG HONG KONG

¡

PERSONAL FOR RICKETTS, HKD.

FROM PS/GH.

YOUR TELNOS 246 AND 259 AND OUR TELNO 342: HONG KONG: GARRISON WITHDRAWAL.

1. WE HAVE BEEN GIVING FURTHER THOUGHT TO OUR APPROACH TO THE FUNDING PROBLEM IN THE LIGHT OF THE COMMENTS IN FIRST TUR.

2. WE SHARE YOUR VIEW THAT THE IMMEDIATE PRIORITY MUST BE TO FIND SHORT TERM SAVINGS. MEASURES TO CUT OUT NON-ESSENTIAL SPENDING AND TO REDUCE SUPPORT COSTS WILL NEED TO BE PUT IN PLACE VERY QUICKLY IF THEY ARE TO YIELD RESULTS IN 1993-94. WE THEREFORE PROPOSE TO GO AHEAD WITHOUT DELAY TO DISCUSS THE SCOPE FOR IMMEDIATE COSTCUTTING WITH HQBF AND, IF NECESSARY, WITH MOD.

3. THE REVIEW OF THE WITHDRAWAL PLAN CAN BE TAKEN IN SLIGHTLY SLOWER TIME, ALTHOUGH IT TOO MUST BE COMPLETED AS SOON AS POSSIBLE. WE THEREFORE AGREE THAT WE SHOULD HOLD UP AN APPROACH TO THE DEFENCE SECRETARY UNTIL THE LATTER'S LETTER ON THE FRAMEWORK OF THE REVIEW ARRIVES, AS RECOMMENDED IN FIRST TUR. WE HOPE THAT THIS DOES NOT TAKE TOO LONG. WE WILL OF COURSE BEAR IN MIND THE VIEWS EXPRESSED IN FIRST TUR IN OUR APPROACH.

4. WE ARE GRATEFUL FOR THE OFFER OF ASSISTANCE FROM SIR T DAUNT. WE BELIEVE THAT HE COULD HELP MOST BY IMPRESSING ON MOD THE NEED FOR AN URGENT AND HARD LOOK AT SUPPORT COSTS ACROSS THE BOARD (COVERING MAINTENANCE, EDUCATION, MEDICAL SERVICES, SOCIAL SERVICES AND ADMINISTRATIVE SUPPORT). THIS WOULD BE MORE EFFECTIVE THAN FOCUSING ON SPECIFIC EXAMPLES OF CONSPICUOUS CONSUMPTION DRAWN FROM OUR KNOWLEDGE OF GARRISON SPENDING (WHICH IS NECESSARILY SUPERFICIAL SINCE WE ARE TRADITIONALLY PROVIDED WITH ONLY A LIMITED BREAKDOWN OF COSTS BY HQBF). HOWEVER WE ARE FAXING THE FULL TEXT OF THE QUERIES WE HAVE RAISED WITH HQBF ON THE 4TH QUARTER INVOICE WHICH GIVES DETAILS OF THE EXAMPLES IN QUESTION AND OUR OTHER CONCERNS. SIR T DAUNT IS WELCOME TO DRAW ON THIS MATERIAL.

5.

IF SIR T DAUNT WERE ABLE TO DO ANYTHING TO ACCELERATE THE ISSUE OF THE DEFENCE SECRETARY'S LETTER ON THE REVIEW THAT WOULD ALSO BE MOST HELPFUL.

PATTEN

YYYY

HMLNAN O939