TNAG-2677-FCO40-3874-Hong-Kong-garrison-withdrawal-plan-1993 — Page 87

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SECRET

OF

CELLOR

EXCHEQUER

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-Treasury Chambers. Parliament Street. London. SWIP 3AG

071-270 5000

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The Rt Hon Malcolm Rifkind QC MP

Secretary of State for Defence Ministry of Defence

Main Building

Whitehall

LONDON

SW1A 2HB

Dan Mahandes,

NV Mur

12-1

1200

Plannen

November 1993

Néwi det Speial Adusen

New James 121..

12/16

6th indaris fi Mh Bunke

Time now for a foras-

HONG KONG: THE FUTURE OF THE BRITISH GARRISON

I Hink, weil

dette consider froh hier dring ite fovenor in

to

Thank you for copying to me your minute of 12 October to the Prime Minister, in which you proposed delaying a decision on the way forward until next year.

As you say, our officials have now established that my alternative approach for implementing the agreed run-down of the Hong Kong garrison would save some £30m over the next 4 years. The savings split roughly half and half between 1995-96 and 1996-97, with some additional upfront costs in 1994-95 largely offset

by additional savings in 1997-98.

Now that we have established the costs, I believe we should press ahead and make a decision. I am afraid that neither of your reasons for delaying a decision are persuasive:

we have now settled the defence budget for the next 3 years, and you have agreed to find savings in each year. My suggestion on Hong Kong will contribute to this. By deferring a decision until after the next Long Term Costings, you only put the saving itself at risk, since the delay may make it more difficult to the Gurkhas by April 1995.

disband