CONFIDENTIAL AND PERSONAL

SECRETARY OF STATE

Antarctica it is difficult to see how isolated incidents might arise in circumstances which did not also generate a requirement for other military forces. The risks of disputes in any case appear to have been significantly reduced with the recent agreement on minerals

which effectively secures the long term status of the Antarctic Treaty and ensures that sovereignty claims remain in abeyance.

4. I am aware that ENDURANCE is fixed in the hearts and minds of

the Falkland Islanders who see this ship as a token of HMG's

commitment to their defence. But of course the position over the protection of the Falklands has entirely changed. This is now met by the substantial permanent garrison, supported by the Navy and a brand new major airport at Mount Pleasant which provides the capability to reinforce the Islands at short notice, and has a major

radar network and fighter aircraft to defend it. In these very

changed circumstances ENDURANCE no longer has any military significance, nor is it plausible to argue now that withdrawal would

cast any doubt, whether in Argentina or the Falklands, on our

commitment to the Islanders, with the massive defence commitment

that we now make.

5.

In these circumstances, I have concluded that, given the very considerable pressures on the defence budget, the capability represented by HMS ENDURANCE, which costs around £1M a year to run,

no longer enjoys sufficient priority to justify a continuing place in the defence programme. ENDURANCE returned to the UK on May 31st and begins a planned maintenance period on 24th June before her next

deployment.

6. I would like to announce a decision before 24th June, but in

view of its sensitivity I wanted to seek your views before moving

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