SECRET
SECRET
FM FCO
TO PRIORITY HONG KONG
TELNO
2139
OF 10160OZ DECEMBER 91
INFO PRIORITY PEKING, JLG HONG KONG
HKB 063/+
192
077141
MDLOAN 1732
RN PRESENCE IN HONG KONG
1. YOU WILL BE PLEASED TO LEARN THAT THE QUESTION OF FUNDING FOR THE CONTINUED RN PRESENCE IN HONG KONG APPEARS TO HAVE BEEN SATISFACTORILY RESOLVED. THE TREASURY HAVE AGREED TO GIVE THE MOD EXTRA PROVISION IN THIS YEAR'S PUBLIC EXPENDITURE SURVEY ROUND AND THIS IS EXPECTED TO CONTINUE IN FUTURE YEARS. BUT, AS RESTATED IN THE LETTER FROM THE PRIVATE SECRETARY TO THE DEFENCE SECRETARY (NOW FAXED TO PS/GH), THE MOD CONTINUE TO SEE THE DEFENCE CASE AS VERY WEAK11.
2. WE HOPE THAT THIS CONCLUDES THE MOD'S EFFORTS TO WRING MORE THAN THE AGREED DCA CONTRIBUTION FROM HONG KONG: BUT THE 1991 REVIEW OF THE GARRISON WITHDRAWAL PLAN SUGGESTS THERE MAY BE FURTHER SCOPE FOR DISPUTE. WE MUST CLEARLY DO ALL WE CAN TO PREVENT THIS.
HURD
YYYYY
LIMITED 6
HKD
NPDD
FED
9
4
PS/LORD CAITHNESS
SIR J COLES
MR BURNS
MR GOULDEN
[COWAN]
NNNN
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