CONFIDENTIAL

6.

In short we have got nowhere in pressing Hong Kong to

find extra money beyond their DCA share. The results of the

LegCo elections make it even more unrealistic to envisage an approach to the Finance Committee of LegCo. The platform of

Mr Martin Lee's United Democrats of Hong Kong, specifically argued that Hong Kong should pay less towards the costs of

the Garrison.

7. We need to try to pre-empt the possibility of the FCO being asked to shoulder part of the costs. This is a

problem we also face with the other out of area responsibilities with which we are in discussion with the

MOD - HMS Endurance, the West Indies Guardship, and the

Belize Garrison. To guard our flank on this, it is essential to maintain the line that there is a genuine military need for the vessels.

PF Ricketts

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CONFIDENTIAÍ

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