TNAG-2675-FCO40-3872-Hong-Kong-garrison-withdrawal-plan-1993 — Page 88

GOVERMENT HOUSE HONG KONG.

WED 14 APR 93 09:42

PG.12

Page

File No.

SECRET

9.

The meeting then decided that S for Tsy and Mr. Fraser should have a private conversation to see whether there would be a way forward.

However

[Upon their return, S for Tsy said that he could see why MoD couldn't get less than what they were due. he also considered that it might be possible for HKG to legitimately question the bills when they were received in February (such as the changes in Sterling exchange rates and under-spending) · The process of questioning and answering would probably take us to April by which time HKG would be able to pay for the rest of the funds in next year's Budget. To this, Mr. Fraser said that the idea was ingenious but he had to say it was contrived.

The He did not think HMG could get away with it. Governor commented that the S for Tsy and Mr. Fraser

There were certain should continue to maintain contact. issues which he was keen to keep away from Legco, the Garrison being one of them. Mr. Rifkind said that HMG

If we could would like to be as helpful as possible. play within the limit of the rules, he would certainly be prepared to consider that. However, he said he would certainly not want to be seen to be breaking any rules. If HKG went to Legco and did not get approval for the funds, HMG would have a better explanation to give to Parliament." However such an explanation would be difficult if HKG did not even approach LegCo. Governor rounded off the discussion by saying it was in both side's interests to resolve the matter as soon possible.]

The Future

10.

The

as

with regard to running down the size of the Garrison, Mr. Rifkind said the review would normally take place in September. This could be advanced by two months or so if necessary. When this was completed, it would be necessary to decide:

(a)

(b)

when we should next withdraw the Gurkhas, either 1994 or 1995?

whether it would be sensible at an early stage to make public a timetable of the withdrawal of the Garrison? (the advantage of doing so would be openness, however the disadvantage would be that it would take away our flexibility)

He had no strong views on the above.

SECRET