TNAG-2677-FCO40-3874-Hong-Kong-garrison-withdrawal-plan-1993 — Page 93

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SECRET

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EXCHEQUER

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PS Iow Good lad Goodlad PS IPUS Suscules

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Treasury Chambers, Parliament Street, London, SW1P 3AG

071-270 5000

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1 NOV 1993

The Rt Hon Malcolm Rifkind QC MP Secretary of State for Defence

Ministry of Defence Main Building.. Whitehall

LONDON

SW1A 2HB

Defence

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NPDD Planner November 1993

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M Morris

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Dan Malandas.

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Jette considle froh how HONG KONG: THE FUTURE OF THE BRITISH GARRISON to dring the fovernor in

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. Ι 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.

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