157
CONFIDENTIAL
The Rt. Hon. Tom King MP
Secretary of State for Defence
Ministry of Defence
Whitehall
London SW1
bam
Thank you for your minute of 10 June about the
future of the RN patrol craft in Hong Kong.
I discussed this issue with the Governor of Hong Kong during his recent visit to London. He remains
strongly of the view that there is a [clear military requirement for retaining the patrol craft until 30 June 1997; and that if patrol craft are withdrawn in 1992 we
must expect increasing encroachment by Chinese patrol vessels into Hong Kong waters, which would receive considerable local publicity. He also advises that
believes
seeking the approval of Finance Committee for a special arrangement for the patrol craft which went beyond the
cost-sharing ratio agreed in the defence costs agreement
damagno would create a political row which would be very damaging
for HMG.
The Governor well understands the pressures on the
defence budget, and has examained very carefully whether
there are ways in which alternative solutions can be
found, including the idea of the HKG buying out the MOD's
capital interest in the craft and operating them
themselves. In his judgment, however, none of these are
workable.