CONFIDENTIAL

FM HONG KONG

TOP COPY Q DIST ?

464

CONFIDENTIAL

MKC 062

RECEIVED IN REGISTRY

29 SEP 1987

TO IMMEDIATE FCO

TELNO 3575

DESK OFFICER

REGISTRY

OF 22122OZ SEPTEMBER 87

INDEX

PA

Action Taken

INFO IMMEDIATE PEKING

105171

MDHIAN 4020

JLG VII : FOLLOW-UP: DEFENCE AND PUBLIC ORDER : CHINA FLEET CLUB

-

WE HAVE JUST BEEN INFORMED BY CAPTAIN IN CHARGE (TAMAR) (CAPIC)

THAT YESTERDAY THE CHINA FLEET CLUB (CFC) PUT OUT A TENDER FOR SALE

OF THE CLUB'S PROPERTY WHICH CONSISTS OF THE CHINA FLEET CLUB BUILDING. THE CLUB OWNS THE

LOWER FLOORS WHILE THE 9TH

COMMERCIAL PREMISES FOR WHICH THE HONG KONG LAND HAS BENEFICIAL USE

UNTIL 2015 UNDER AGREEMENT ENTERED BETWEEN HONG KONG LAND AND CFC.

THE CAPITAL FUNDS REALISED IN THE SALE WILL BE USED TO FINANCE

PROJECTS AND FACILITIES IN THE UK FOR USE OF SAILORS OF THE ROYAL

NAVY (AS MEMBERS OF THE CLUB).

WHOLE BUILDING BUT ONLY OCCUPIES THE

26TH FLOORS OF THE BUILDING ARE

2.

DESPITE THE CLOSE LINKS BETWEEN THE CLUB AND THE ROYAL NAVY IN HONG KONG (CAPIC IS THE EX-OFFICIO SENIOR TRUSTEE OF THE CLUB), THE FORMER IS LEGALLY A PRIVATELY OWNED AND RUN CLUB WHICH CAN DECIDE, ON ITS OWN, HOW TO DISPOSE OF ITS ASSETS. HOWEVER, THERE IS A RISK THAT THE PUBLIC, AND POSSIBLY THE CHINESE, MAY PERCEIVE THE CLUB'S DECISION AS A MOVE CONNECTED WITH THE RUN DOWN OF THE

GARRISON. IT IS ALSO CONCEIVABLE THAT THERE MAY BE SOME UNHELPFUL

REPORTERS QUERYING THE PROPRIETY OF WHAT THEY REGARD AS A MOVE BY

THE GARRISON TO DISPOSE OF ITS ASSETS PRIOR TO 1997.

3. AS THE CHINESE MAY WELL PICK THIS UP AND RAISE IT DURING THE DEFENCE AND PUBLIC ORDER EXPERT TALKS, WE WILL INCLUDE IN THE DEFENSIVE Q AND A BRIEF, WHICH WE WILL TELEGRAPH TO YOU LATER. PEKING MAY MEANWHILE WISH TO DRAW ON PARA 2 ABOVE IF THE CHINESE

RAISE IT.

WILSON

YYYY

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CONFIDENTIAL

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