13

From:

Sir David Wilson KCMG

beelus

香港總 督府

Mr. A. Bins,

Auss

GOVERNMENT HOUSE CS

TONG KONG

FS

Stors

Redacted Under FOI Exemption Sec 27(1)

SECRET

Tael,

13 December 1990

1520/12

122275/ Card/

Саный

itstela

тя

Jo Paul (1)

Il hymbanduhred

and how they did

تند ها

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It was very kind of you to spare the time to see me during my visit to London last week, particularly when you have so many other pressing matters on your mind.

As I told you then, I am extremely concerned at the lack of progress that has been made on agreeing the financing arrangements for the retention of the Royal Navy patrol craft in Hong Kong beyond 1992. We see a genuine military need for these shing This view is endorsed by the Commander British Forces.

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IL MOD itum

These reasons point clearly to a need to retain the patrol craft well beyond 1992. But any arrangement that meant HKG contributing a larger share than that agreed in the Defence Costo Agreement (DCA) would modni having to seek the approval of the Finance Committee of the Legislative Council. This in turn would run the risk of reopening the whole question of the DCA which is, as you know, a very sensitive subject in Hong Kong. Already there are several members of the Council who dispute the annual payments we make under the DCA. change in the arrangements would provide them with all-too-welcome ammunition to attack HMG and denounce the DCA as a whole. With elections due next year we can be sure that this ammunition would be used. In these circumstances it would not make sense, either in domestic political terms or in the interests of relations between the UK and Hong Kong, for me to put to the Legislative Council any proposal for the patrol craft which changed the distribution of costs in the present DCA.

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