SECRET
72
100105
MDHOAN 4402
HKE 063/
FOR WED IN RE
06 JUN1991
TOP COPY Q DIST?
SECRET
FM FCO
TO DESKBY 31010OZ HONG KONG
TELNO 1020
OF 301814Z MAY 91
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FROM ASPREY HKG (VISITING)
RN PATROL CRAFT: DISCUSSIONS WITH MOD, DAY 1
1. WE HAD AN AFTERNOON OF TOUGH DISCUSSIONS WITH MOD. THEY UNDERSTOOD OUR DIFFICULTIES ABOUT APPROACHING FINANCE COMMITTEE FOR ANY VARIATION IN THE DCA 65:35 APPORTIONMENT, BUT NEVERTHELESS THEIR ATTITUDE HAS HARDENED. THEY INSISTED THAT THERE WAS NO MILITARY REQUIREMENT TO RETAIN THE PATROL CRAFT BEYOND
1992: THAT IT WAS PURELY A POLITICAL REQUIREMENT AND HONG KONG WOULD THEREFORE HAVE TO MEET 100 PER CENT OF THE OPERATING COSTS OR
AT LEAST MAKE A VERY SUBSTANTIAL CONTRIBUTION TO THEIR COSTS IF THE VESSELS WERE RETAINED. WE CHALLENGED THIS ON THE BASIS OF THE ROLE OF THE GARRISON AS DEFINED IN DCA. IN THE END WE PUT TO ONE SIDE THIS DIFFERENCE OF OPINION AND SOUGHT TO IDENTIFY THOSE OPTIONS WHICH MIGHT BE POSSIBLE FOR ASSISTING MOD FUNDING.
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2. WE PUT FORWARD THE PROPOSAL OF A REDUCTION OF THREE TO TWO
PATROL CRAFT (REFERRED TO IN THE SECRETARY OF STATE FOR DEFENCE'S REPLY WHICH WE BELIEVE WILL HAVE BEEN FAXED TO YOU YESTERDAY). WE PROPOSED THAT THE WAY TO MEET MOD'S REMAINING COSTS WOULD BE THROUGH SAVINGS IN OTHER AREAS OF DCA, EG. HELICOPTER SUPPORT POST-1992. MOD SAID THAT SUCH SAVINGS HAD EITHER BEEN ANTICIPATED OR WOULD BE EXAMINED IN THE CONTEXT OF THE WITHDRAWAL PLAN. BUT IN ANY EVENT GENERATING SAVINGS IN THIS WAY WOULD NOT ENABLE MOD TO INSERT UNFUNDED PROGRAMME ITEMS
SUCH AS THE PATROL CRAFT IN THEIR BUDGET.
4.
WE REVIEWED THE VARIOUS OPTIONS EARLIER CONSIDERED, INCLUDING AN MOD PROPOSAL THAT WE BUY OUT AND OPERATE TWO OR THREE PATROL CRAFT FROM 1992. MOD'S NEW VARIANT OF THIS PROPOSAL IS THAT THE VESSELS MIGHT BE CREWED, UNDER THE WHITE ENSIGN, BY SOME COMBINATION OF LOAN SERVICE RN PERSONNEL, LOCALLY ENLISTED RN AND MARPOL PERSONNEL. WE HAVE ASKED MOD TO PROVIDE A FULL EXPLANATION OF THIS PROPOSAL, AND INFORMATION IN SUPPORT OF THEIR CONTENTION THAT THIS OPTION WOULD COST LESS THAN PRESENT TOTAL OPERATING COSTS. OUR INITIAL ASSESSMENT IS
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