TNAG-2677-FCO40-3874-Hong-Kong-garrison-withdrawal-plan-1993 — Page 236

SECRET

CHANCELLOR OF

THE EXCHEQUER

until 1 April 1995. This would help reduce the pressure on the Emergency Tour Interval while the Options changes are still in train, without implying that there will be continuing need for

more than 40 battalions after the Options restructuring is

complete.

From 1 April 1995, the UK battalion would return to Hong Kong, and

the Gurkha battalion be disbanded. This would save the UK both

its 35% contribution to the Gurkhas, and the Hong Kong Government

would pick up 65% of the cost of the UK battalion.

I acknowledge the presentational difficulties in disbanding the Gurkhas early, but they would be disbanded in September 1996 anyway. I also recognise that the second approach might make it more difficult to secure the potential savings in infrastructure

in Hong Kong, but we need further advice on the extent to which this would offset the other savings to MOD.

I suggest that our officials look at the costs in more detail, and

report back before we reach a final decision on how best to

implement Malcolm's proposal for a smaller Garrison in Hong Kong.

I am copying this letter to other members of OPD (K) and to Sir

Robin Butler.

Li

29 June 1993

[K.C.]