HKC 062.
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CEIVED IN
DESK
INDEX
O 2 AUG 1990
PS/Mr Maude
CONFIDENTIAL
Y
FROM:
35
16 JUL 1990
A R Paul
Hong Kong Department
DATE:
13 July 1990
CC:
Mr McLaren
ROYAL NAVAL PRESENCE IN HONG KONG
Mr Burns
1. Mr Maude might like to know where things stand on the
negotiations between the Ministry of Defence and the Hong
Kong Government about the financing of the running costs of
the naval patrol boats (Peacock Class) during the period up
to 1997.
2. The negotiations are not going well. In a nutshell, Hong Kong want the costs to be split exactly on the basis of
the 65:35 apportionment agreed under the defence costs agreed. MOD believe that the financing should be on terms
which are slightly more favourable to them.
mont
3.
I expect that a suitable compromise will be worked out.
But it is very important that this happens quickly and
quietly. It could be damaging if the fact of a disagreement became known publicly. It could then become a political
issue in Hong Kong.
4.
As the Governor raised this issue personally with
Mr Maude some time ago, I think it would be worth Mr Maude
touching on it very briefly while in Hong Kong at the end of next month. A brief will be provided.
ARPACC
A R Paul
PATABB/1
CONFIDENTIAL