CONFIDENTIAL
!, MED
FROM:
DATE:
17
112 FL 1091
CC:
A R Paul
Hong Kong Department
12 February 1991
Mr McLaren HKB 063/1
Mr Burns
PS/Lord Caithness
McStone
NAVAL PATROL CRAFT
257
91
1. As agreed at yesterday's meeting, I asked Hong Kong to provide precise figures on the gap in cash terms between the Hong Kong Government and the MOD over patrol craft.
2.
I attach a copy of Mr Hoare's letter of 12 February. This puts the MOD's share of the cost of retaining the patrol craft from 1992 1997, under the terms of the DCA, at £15 million. Assuming that the MOD would be willing to cover up to half of this (which is perhaps an
over-optimistic assumption) the "gap" would be around £7.5 million.
3.
It may be worth noting that Hong Kong's calculation of the cost to MOD of retaining the patrol craft is exactly equivalent to the amount which Hong Kong are contributing to the Gulf. This is an unfortuante statistical coincidence
which Hong Kong will not let us forget.
VIMACM/1
ARPane
A R Paul
CONFIDENTIAL
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