A

Саи

it

Wait

See

para 15.

Pavaly her hy

SECRET

HKB 063 /1Mr Stone

RECEIVED IN REGISTRY

18 MAR 1991

DESK OFFICES

I gather tho levity of StatiNEX

47.

agreed

this

that he

will me things

would pursue

afte his chesa /tille ting;

އ

BA

From:

Ry Ft ра

Mr Burns

METTL

Date:

minita

1.11/3

CC:

PS/Lord Caithness

Private Secretary

A R Paul

34

08 MAR 1991

Hong Kong Department

7 March 1991

PS/PUS

Mr McLaren

Mr. Paul, HKD

Thank you.

subject

Mr Davies, FED t

This

was disclosed at

Seuitay of States

meeting with the Covenor. The

восто

Seveloy of State agreed trace it

with the Dejeme Servetery after he has waited Hery Hong.

FUTURE OF THE ROYAL NAVAL PRESENCE IN HONG KONG

Problem

1.

Discussions between the Ministry of Defence and the Hong

Kong Government about the financing of the Royal Naval patrol craft in Hong Kong beyond 1992 are deadlocked. The Governor wishes to raise this with Ministers during his

forthcoming visit. Mr Hamilton has now set out the MOD's

position in uncompromising terms. What is to be done?

Recommendation

2.

If the two sides fail to reach agreement soon, there is

a risk that the patrol craft will be withdrawn. I recommend that we should make every effort to avoid such an outcome

by: -

(a)

encouraging the two sides to hold a further round of talks, preferably after the Secretary of State's

visit to Hong Kong;

(b) explaining to the Defence Secretary the wider political and strategic factors at stake.

"

MOPADZ/1

VAS

SECRET

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