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CONFIDENTIAL
12/10
Seantamid Stuto
SECRETARY OF STATE'S BILATERAL WITH DEFENCE SECRETARY
11 APRIL 1991: HONG KONG PATROL CRAFT.
Points to make
LEG 2. HED
Thank you
There was no time to
Understand financial pressure to withdraw the three love this Peacock class patrol craft in 1991/92.
-
But strong political arguments:
point. Forgi Sarely told this Sefence Search
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- bad for Hong Kong confidence in UK commitment (and
bitterness after £15 m Gulf contribution). Current mood
fragile.
-
Chinese will see a trick to make it harder for them in ke
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1997 to install the PLA garrison with naval element a key political concern for them.
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practical problem of incursions by Chinese gun-boats, ignoring Marine Police instructions.
media may raise Falklands precedent.
Difficult MOD/HKG official discussions. Bad feelings over 1988 Defence Costs Agreement (DCA) row: Governor believes impossible to persuade LegCo Finance Committee to contribute
more than DCA 65%.
- Have asked Governor to reflect imaginatively on accounting
solutions. But essential that MOD also show flexibility and
imagination if we are to reach agreement.
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CONFIDENTIAL has
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