CONFIDENTIAL

HKC 062/1

(67)

[ROYAL NAVAL PRESENCE IN HONG KONG]

I agree: but I suspect that we shall have to ask the Secretary of State to intervene with Mr King.

1.

2.

We are talking about sums of money of no more than £3.75 million chicken-feed to the MOD, but a heavy burden for us.

There is no current suggestion that, if Hong Kong or

But this is a the MOD cannot pay, then the FCO should. thought that has appeared in previous years. We shall want to resist most robustly and vigorously any suggestion that the FCO should fund these vessels. But, in the end, I think that their departure from Hong Kong will be very damaging and the points made by the Governor in the latter part of his Telno 3652 highlight the considerable political sensitivities.

21 December 1990

Cc:

Mr McLaren

Mr Goulden

Defence Department Mr Paul, HKD

Mo Blathewiel

A14AAS

CONFIDENTIAL

Andmed. Emm

R A Burns

Rn1/2

Miss Marsden Mr Stone

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31/12

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