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SECRETARY OF STATE

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HONG KONG: ROYAL NAVAL presenCE AFLOAT

62

MO 6/19/1J

228 May 1991

Thank you for your letter of 14th May on this difficult

subject.

I agree that we should try and resolve it as quickly as possible and avoid exacerbating the existing political difficulties

in Hong Kong.

Ma

-

At the same time, however, I know you appreciate the very awkward financial position we find ourselves in. The current

garrison withdrawal plan which was drawn up in consultation with

the Hong Kong Government assumes that the three Hong Kong patrol craft will be withdrawn in 1992 and it will be necessary to consider

how funds could be made available for their retention after that

date. Despite careful and detailed study, twice, by the Chiefs of Staff and Defence Ministers, no compelling military case can be made

for keeping them in Hong Kong waters. On the other hand,

recognise the political rationale for retaining an afloat RN presence as a clear symbol of HMG's continuing commitment to the Territory and, as we have said before on several occasions, we would

be content to keep the patrol craft in Hong Kong, provided that

arrangements can be made to reduce extra costs to a level which can

be accommodated in the hard pressed defence budget.

The Rt Hon Douglas Hurd CBE MP Foreign and Commonwealth Secretary

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