TNAG-2675-FCO40-3872-Hong-Kong-garrison-withdrawal-plan-1993 — Page 63

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m that you too are content to proceed on this basis, on the understanding that we could return to the more radical option for reduction to a single battalion if the new negotiations with China over constitutional development lead to a significant and durable

improvement in our bilateral relations with them.

I recognise that this also has to be seen against the political problems you face over maintaining LEGCO support for meeting defence

costs. I also recognise that resolving these difficulties will

require further discussion and an exchange of ideas on the extent to

which garrison costs can be reduced to meet the likely availability of Hong Kong government funds. I have asked MOD staff to seek to

make further substantial economies in the tail element of the

garrison. But I believe it is important that this further work is

carried out against an agreed policy and operational framework so

that it can focus on how our objectives can be met most cost-effectively.

I hope you can confirm your agreement to proceed on this basis.

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Malcolm Rifkind