MO 6/19/1J

CONFIDENTIAL

Per Stone (P" fax to FIC

11/1

Gf

Me foul HKD Joradnie pl (although

reply may need to wait until after the Governor's visit).

SECRETARY OF STATE

FOREIGN AND COMMONWEALTH SECRETARY

HKB 063/1

seps

PS/Lord Caithness

PS/PUS Sú J Colas ат вито NPDD Sp Adv.

CA

HONG KONG PATROL CRAFT

We recently exchanged brief letters about the problem of the

future of the RN Patrol Craft in Hong Kong which are due to be

withdrawn in 1992 and which the Hong Kong Government (HKG) now wish

to see retained until 1997. Officials met in London last week.

Discussions were useful and identified a number of possible approaches which the HKG are considering further as a matter of urgency, but it is not clear that any of these will in the end be acceptable to the HKG. As I cannot defer the first steps in the withdrawal process for much longer, I though I should give you a full report on the position now and, in view of the possible wider implications, I am also giving this minute a slightly wider

distribution.

"

2.

The Hong Kong Government and MOD originally jointly procured five patrol craft for Hong Kong. Although they are manned by the Royal Navy, the operating costs are divided between the two governments (currently NKG 65%, MOD 35%). In accordance with the plan for the run-down of British forces agreed with the HKG in 1987, two were sold to the Irish government in 1988 and the remaining

three vessels were to be withdrawn in 1992, when the Hong Kong

maritime police would assume full responsibility for patrolling in

Hong Kong waters. For that reason, no financial or manpower provision was made in the defence programme for retaining the craft

in Hong Kong beyond the end of this financial year. There has been

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