Loke

CONFIDENTIAL

Archie Hamilton Esq, MP

Minister of State for the Armed Forces

Ministry of Defence

Whitehall

LONDON

SW1A 2HB

HONG KONG PATROL CRAFT

Thank you for your letter of 26 February about the Royal Naval presence in Hong Kong.

As I said in my earlier letter, I do appreciate your

budgetary difficulties and I can well understand your

wish to resolve this matter as quickly as possible. I

am sure the Governor can be in no doubt about the MOD's

position, as set out in the final paragraph of your

letter.

A

Douglas Hurd had time for only a very brief word with the Governor about this during the latter's recent

in vaw of the importance to thing king and the United Kingdom visit to London. He intends however to go over the

ground in greater detail during his forthcoming visit to Hong Kong on 2-3 April; and Qn his return he would like to discuss the subject with the Defence Secretary and are can deach

subjectmally acceptable solphor.

understand your keeness to settle this matter and but

I therefore' hope that, despite the urgency of the

matter, you can bear with us a little longer, in the interest of reaching a mutually acceptable solution.

sure you would

Earl of Caithness

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