The Franks

seven weeks later the Falklands were invaded. Report concluded that it was "inadvisable" of the Government to have announced the withdrawal of the vessel.

4. The main arguments for the retention of ENDURANCE and her replacement as planned remain broadly as they were nine

years ago.

(a) Whilst the Argentine claim to the Falklands remains it is important to retain HMG's normal presence in the area;

(b) It follows that a highly visible reduction of Our capabilities which would result from the withdrawal of ENDURANCE would be interpreted in Buenos Aires, Port Stanley and Santiago ( Chile being a claimant to part of the British Antarctic Territory (BAT) together with Argentina) as lack of commitment to the Falklands and the BAT;

(c) the hydrographic surveys conducted by ENDURANCE on behalf of the MOD and its helicopter patrols in the BAT are important aspects of the exercise of sovereignty there. RN ships can and should play a key part in support of sovereignty and the civil power.

5. I think it likely that the MOD will seek to argue (if they do not press for an immediate end to the ship's work as part of the Options for Change exercise) that any replacement for ENDURANCE should not be provided from the Defence Budget. Since they regard much of it's work as civilian in nature they may propose that ships owned by the British Antarctic Survey should be used. Even if eventually they concede that ENDURANCE and it's successor should continue to be regarded as performing "defence related" tasks, it seems likely that MOD will seek contributions to capital and operating costs from Government agencies with an interest in Antarctica, principally the FCO and DES( British Antarctic Survey) and possibly the DOE, DTI and Department of Energy.

6. Lords Buxton and Shackleton whom I met last week are worried that the MOD will try to present us with the fait accompli of withdrawal of ENDURANCE. They will be attempting to ascertain MOD's intentions by PQs and will continue to lobby. The FCO's view that We are certainly expecting replacement was reiterated by Mr Garel-Jones when he saw Lord Shackelton recently. We shall keep a close eye on

developments.

Myrvink Ben-Jette

Merrick Baker-Bates 270-2742 WH 313

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