GOVERMENT HOUSE HONG KONG.
WED 14 APR 93 09:35
PG.06
Background
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Governor's visit to London. 3 - 17 April 1993
Garrison withdrawal
Garrison withdrawal and defence costs
MOD will review plans for withdrawal of the garrison in 1993. The previous review, in 1991, concluded that the pace of withdrawal should be slower than had earlier been planned "stronger for longer". This no longer looks desirable or feasible given the financial difficulties facing the garrison (see below) and the realistic roles it might be expected to play in the coming years. We are keen that the review should be concluded urgently and should identify ways to speed up withdrawal, including the withdrawal of a second battalion in 1994 rather than 1995. We also want to ensure a strong Hong Kong input to the review.
2.
The Defence Secretary plans to write to the Governor with a paper on the policy framework for the review. FCO have advised us in confidence (telegram at Tab A) that the framework paper has been held up because MOD Ministers have asked MOD staffs to consider the early withdrawal of one battalion to help ease the pressure on British forces arising from Bosnia commitments. This idea is welcome: it would meet our concern for earlier withdrawal of a second battalion (although the battalion in question might be the only UK battalion rather than a Gurkha battalion).
Defence costs agreement
3. There is a deficit of $220 million in provision for defence costs in 1992-93. The estimates for 1993-94 ($1,599 million) understate HQBF's original estimate by $40 million and take no account of the 1992-93 overspill.
4. We have asked a number of questions on the 4th quarter invoice for 1992-93 from HQBF (including the reasons for the purchase of 168 new vehicles). When satisfactory replies are received, the outstanding amount will be paid, but from the
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