164445

MDLIAN 2707

14

SECRET

FM HONG KONG

TO PRIORITY FCO

TELNO 1184

OF 06070OZ APRIL 90

?186272

PERSONAL FOR MCLAREN, AUSS FROM GOVERNOR

НКС 062/

MAY 1990

MOD TELNO UN OF 200830Z MARCH: ROYAL NAVY PRESENCE IN HONG KONG

7

1. TUR ARGUES THAT IF THE EXISTING THREE PEACOCK PATROL CRAFT ARE TO BE RETAINED IN HONG KONG AFTER 1991/2 THE NORMAL 65:35 COST SHARING ARRANGEMENT SHOULD NOT/NOT APPLY. RATHER THE FULL COST SHOULD BE BORNE BY HONG KONG, EITHER DIRECTLY OR THROUGH SOME OFFSETTING ARRANGEMENT.

2. I AM VERY CONCERNED THAT MOD, ALBEIT ONLY AT OFFICIAL LEVEL, ARE TAKING THIS POSITION. AS YOU KNOW, THERE ARE GOOD REASONS, BOTH PRACTICAL AND POLITICAL, FOR RETAINING THE PATROL CRAFT. IT MAKES NO SENSE F, EVERY TIME WE COLLECTIVELY DECIDE THAT THERE SHOULD BE SOME ADJUSTMENT TO THE ORIGINAL GARRISON RUNDOWN PLAN, IT IS ARGUED THAT THE FULL COST SHOULD FALL ON HONG KONG. THIS SORT OF ARGUMENT INHIBITS SENSIBLE PLANNING. FURTHERMORE, SHOULD MOD EVENTUALLY INSIST ON FINANCIAL ARRANGEMENTS DIFFERENT FROM THE REST OF THE DCA, WE SHOULD HAVE TO GO TO FINANCE COMMITTEE FOR ADDITIONAL FUNDING. I HAVE NO DOUBT THAT THIS WOULD CAUSE A MAJOR POLITICAL ROW. IT WOULD BE A HEAVEN SENT OPPORTUNITY FOR THE RADICALS TO CRITICISE THE REST OF THE DCA FUNDING ARRANGEMENTS AS WELL. IT WAS NOTABLE THAT, IN SCRUTINY OF THIS YEAR'S BUDGET BY FINANCE COMMITTEE, A NUMBER OF MEMBERS TOOK THE OPPORTUNITY TO COMPLAIN ABOUT VARIOUS ASPECTS OF THE DCA ARRANGEMENTS.

3. IF IT IS AGREED THE THREE PEACOCK PATROL CRAFT SHOULD REMAIN WE WOULD WISH TO POINT TO THE DECISION AS A GOOD EXAMPLE OF HMG'S DETERMINATION TO RETAIN THEIR POSITION IN HONG KONG, AND DO ALL THAT CAN BE DONE TO MAINTAIN CONFIDENCE RIGHT UP TO 1997. BUT IF MOD INSIST THAT HONG KONG SHOULD PAY 100 PER CENT OF THE COST THIS MESSAGE WILL BE LOST. INDEED IT WILL BE REVERSED.

4. I HAVE DISCUSSED THESE CONCERNS OVER THE PAST 10 DAYS WITH THE MINISTER FOR ARMED FORCES, THE CHIEF OF THE DEFENCE STAFF AND CINCFLEET, ALL OF WHOM HAVE BEEN VISITING HONG KONG. THEY HAVE ALSO BEEN BRIEFED BY CBF AND ARE, I BELIEVE, WELL AWARE OF THE PROBLEMS.

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