FROM: Simon Gass
CONFIDENTIAL
TO:
S Webb Esq
PS/Secretary of State for Defence
FUTURE RN PRESENCE IN HONG KONG
FCO and MOD have kept in touch about developments on this subject over past months. I write now to confirm for
the record that, in light of discussions during the
Governor's recent visit here, we have reached the end of the
road on the question of whether Hong Kong Government could
secure additional funds to help you meet the cost of retaining the three patrol craft in Hong Kong
(correspondence resting with Stephen Wall's (No 10) letter of 31 July).
As you know Hong Kong already pay 65% of the cost of the garrison, with the MOD paying the remaining 35%.
At our
strong urging, Hong Kong looked very hard for additional
funds. But they were unable to identify any such funds which would not require them to go to the Finance Committee
of the Legislative Council. It has renewed the judgement of the Governor, which we share, that an approach to the Finance Committee would not produce any new funds and would rebound very badly indeed.
This view was reinforced by the success of the United
Democrats of Hong Kong (led by Mr Martin Lee) in first direct elections to LegCo which were held in September. "Liberals" now hold 22 of the 60 seats with a majority of
the elected members, and supporters on this issue in other
ALEAAY/1
CONFIDENTIAL