SECRET
152522 MDHIAN 1254
MKB 063/1
TOP COPY Q DIST?
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 1930
OF 141229Z JUNE 91
INFO PRIORITY PEKING, UKREP JLG
Go
NG KONG
RN PATROL CRAFT
1. AT THE MEETING WITH MOD ON 31 MAY, OUR TEAM UNDERTOOK TO REVIEW ALL THE FUNDING OPTIONS EARLIER CONSIDERED IN RESPECT OF THE OPERATING COSTS OF THE PATROL CRAFT, IF THEY WERE RETAINED AFTER 1992.
attached,
2. WE ARE FAXING TO STONE, HONG KONG DEPARTMENT, DETAILS OF, AND A COMMENTARY ON, THE VARIOUS OPTIONS THAT HAVE BEEN PUT FORWARD. IN BRIEF, ALL THOSE SUGGESTED BY MOD WOULD INVOLVE CONSULTING FINANCE COMMITTEE, SINCE THEY REQUIRE EITHER THE PROVISION OF ADDITIONAL FUNDS OR A CHANGE IN THE PATTERN OF EXPENDITURE ENVISAGED WHEN FINANCE COMMITTEE APPROVED THE DCA PACKAGE IN 1988. ALL TRIGGER THEREFORE THE POLITICAL PROBLEMS WE ARE TRYING
TO AVOID.
3. OUR PAPER SUGGESTS THAT THE MOST SENSIBLE WAY FORWARD IS TO REDUCE THE PATROL CRAFT FROM 3 TO 2 IN 1992 AND FOR MOD AND HQBF TO IDENTIFY SAVINGS IN GARRISON OPERATING COSTS TO HELP OFFSET SOME OF THE RUNNING COSTS OF THESE VESSELS IN THE PERIOD UP TO 1997. IT IS DIFFICULT FOR US TO KNOW WHERE THESE SAVINGS MIGHT BE MADE, AS WE RECEIVE VERY LITTLE INFORMATION FROM MOD ON THE ESTIMATING ASSUMPTIONS INCLUDING CURRENT AND FUTURE LEVELS OF COSTS UNDER THE DCA. ONE POSSIBILITY WE HAVE SUGGESTED IS TO REDUCE AIR SUPPORT WHEN THE POLICE TAKE OVER THE WHOLE OF THE BORDER IN 1993.
HEIR
IF MOD ARE UNWILLING TO PURSUE THE PACKAGE IN PARA. 3 ABOVE, AND INSIST THAT THEY WILL NOT FIND ANY ADDITIONAL FUNDS FOR SHARE OF PATROL CRAFT COSTS AFTER 1992, WE WILL FACE THE DIL_MMA OF WHETHER TO SEEK FINANCE COMMITTEE'S APPROVAL FOR THE ADDITIONAL COSTS OR TO ALLOW THE PATROL CRAFT TO BE WITHDRAWN IN 1992. BOTH OPTIONS ARE EXTREMELY UNATTRACTIVE AND WOULD DAMAGE THE INTERESTS OF HMG AS WELL AS CAUSING DIFFICULTIES LOCALLY.
5.
I REMAIN CONVINCED THAT A CONTINUING ROYAL NAVY PRESENCE IN
PAGE
SECRET
1