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However, and without prejudice to subsequent discussions between our staffs, you might like to consider a solution whereby the Hong Kong Government would take over the manning and operation of the patrol craft from 1992. We would be prepared to provide, on repayment, loan service personnel to help with the transition to full Hong Kong manning. This would solve our finance and manpower problems; would enable the vessels to stay in Hong Kong; and need not involve any adjustment to the Defence Costs Agreement, which I take to be your principal concern.
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I suggest that your staff and mine get together urgently in London to discuss this and other options. Time is getting short it is little more than a year to the point where the patrol craft are currently due to be withdrawn and I believe we must aim to reach agreement in principle on the way ahead by the end of the month. If that proves impossible, I fear I see little option but to recommend to Ministers here that we proceed with withdrawal as planned.
I recognise this will be a disappointing reply; but Defence Ministers are adamant that we cannot take on this additional commitment without a very substantial contribution towards the burden on defence resources of doing so.
Sir David Wilson KCMG
HM Governor
Government House Hong Kong
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