1.
.a
Mr Burns
Private Secretary
SECRET
нив 063/
RECEIVER IN RE
TRY
16 MAY 1991
SK OFFICER
A
REGISTRY
Taken
53
INDEX
FROM: A R Paul
Hong Kong-Department
DATE: 3 May 1991
cc: PS/Lord Caithness
Sir J Coles
HONG KONG: ROYAL NAVAL PRESENCE AFLOAT
Problem
1. How to resolve the dispute with Hong Kong Government
about the funding of the Royal Naval presence there after
1992.
A
B
Recommendation
2.
I recommend that the Secretary of State speak again to
the Defence Secretary, proposing that the number of patrol
craft be reduced from three to two. I submit a draft
speaking note, stressing the savings that would accrue to
the MOD and the movement made by the Hong Kong Government.
Background
3.
The Secretary of State had a brief word with the Defence
Secretary in the margins of Cabinet on 11 April about this:
Mr King undertook to look at the matter (although his
officials have continued to insist on concessions from Hong Kong). The Governor has looked again at ways of finding
more money to meet the MOD's requirement. He has concluded that there is no practicable way of giving the MOD more
cash, without reverting to the Finance Committee.
reducing the number of vessels from three to two is
feasible, although this would be undesirable from the
operational point of view, as it would limit the RN's
flexibility in Hong Kong and would affect their ability
RODAGA/1
SECRET
However,