accepted.

SECRET UK EYES A LOCSEN

67. NMS.

CBF Hong Kong is the holder of an Intermediate Higher Level Budget. He is responsible for achieving the objectives set out in his management plan within allocated resources in accordance with

JSP 414.

PART THREE - SEA: LAND AND AIR MATTERS

SEA

General

68. Since CDS

13/89

there has been

major change in emphasis

concerning the RN withdrawal; namely, the decision that subject to

suitable financial arrangements being agreed with the HKG the 3 Patrol

Craft should remain until 1997. This decision was taken in

recognition of the fact that although the military case for retention

is weak, and would not by itself justify the allocation of additional

defence resources, the patrol craft are an important symbol of HMG's continuing political commitment to Hong Kong. This is an important

factor in preserving confidence in the Territory.

69.

The retention of the patrol craft will have a significant effect

on the remaining naval manpower and resources as there will be a requirement to maintain the support facilities and a naval base. It

is planned that the naval base will move to Stonecutters' Island in

late 1992 immediately prior to the "filling in" of the current basin

at HMS TAMAR. This is a consequence of the HKG's plans to reclaim

land from the harbour in order to provide additional sites for development in the Central Business District. Planning has already

begun to reprovision the naval base at Stonecutters' Island and the

new base will be completed by September 1992. It is unlikely that many savings in RN manpower and other resources will accrue.

Page 25 of 47 pages

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