CONFIDENTIAL

Redacted under FOI exemption section 27(1).

territory with a consequent effect on confidence.

Remsches

that

The Chinese nevertheless may consider our

withdrawal

is an attempt

and reopen the whole Defence Costs Agreement Controversy,

under which

It pays 65% of the

costs of the

garrison.

to undermine the rationale for their own naval

presence after 1997.

1

20.

The issue of the withdrawal of the patrol

craft remains deadlocked between the FCO, MOD and

the Hong Kong Government.

alternati ke

The Governor considers

that the MOD's proposal that Hong Kong meet a much

higher share of the operating costs would create a

damaging political row in Hong Kong Nor, in his

View, would the idea of the HKG buying out the

MOD's capital interest in the craft and operating and

practical grounds

them themselves, be workable,

21. A similar impasse has been reached over the

MOD's proposed disposal of HMS Endurance from the

HMS British Antarctic Territory (Serial 1).

калия

Endurance has a symbolic and practical issue.

Symbolic, in that it is perceived by the

Argentines, Falkland Islanders and other countries

as the embodiment of HMG's commitment to our

dependent territories in the South Atlantic.

Practical, in that HMS Endurance and its

helicopters play a unique role in support of the

British Antarctic surveys research activities in

the British Antarctic Territory, and in carrying

out hydrographic surveys in the South Atlantic.

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