SECRET UK EYES A

6. In my joint discussions with the Governor and CBF on these matters, the following points emerged:

a.

The Governor now believes a RN presence of approximately the current size will be needed to maintain sovereignty of H waters up to the final withdrawal in 1997. He has concluded that MARPOL will not be able to deal so effectively with the sort of PRC hot pursuit intrusions that are now taking place in HK waters and that only an appropriate White Ensign presence will suffice. When asked, the Governor clearly expected the running-on of the remaining 3 Peacock Class boats to meet this requirement. I therefore foresee the need to review and define clearly in the forthcoming study the role and capabilities expected of any RN contingent extended beyond the present planning dates and the type of vessels needed for that purpose.

b. We agreed that further consideration needs to be given to the means by which the effectiveness can be maintained of LEPS and LECS, on which much of the Garrison's support depends. They cannot realistically be expected to serve at full strength and effectiveness until 30 Jun 97 and then suddenly disband. The Governor therefore agreed to examine the possibility of progressively absorbing LEPs and LECS (as they became surplus to Garrison needs up to and including 30 Jun 97) in other roles such as non-police appointments in the RHKP, thereby offering the prospect of continuing employment and effectiveness.

c.

The Governor acknowledged that hard bargaining lay ahead with the PRC over the future use of Defence Lands. While he recognises the need to ensure its most economic use through timely disposals for other purposes over the withdrawal period up to 1997, the PRC is working on the principle that all current defence land holdings and property will pass to them in toto. This is a matter more for the civilian administration than CBF, so long as sensible plans emerge to meet our defence needs, but there will no doubt be an early test case of PRC intent now that they are aware of the HK Government's wish to incorporate HMS TAMAR in a major commercial land reclamation project. I see MOD's interests here as ensuring that adequate provision is made for defence accommodation in any plans that emerge and that, where possible, the UK gets appropriate financial benefit for relinquishing its land and building assets to help offset any re-profiled and more costly rundown that may arise from a revised HK Withdrawal Plan.

REPUBLIC OF KOREA (ROK) 1-5 MAY

1.

I last visited ROK just under 2 years ago and I therefore had a useful yardstick against which to measure the impressions gained on this my second visit. During that interval the Country has concluded a successful Presidential Election, despite worrying signs of major unrest beforehand, and has gained international recognition for its highly efficient administration of the Olympic Games in 1988.

F VVISREPS/1

2 of 10

SECRET UK EYES A

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