There is no question of their supporting an increase in the proportion which Hong Kong pays: for us to propose this would play into their hands, greatly complicate the
relationship between HKG and LegCo and give them the
opportunity to press for a reduction in the overall amount paid by Hong Kong towards the garrison which would be a popular position locally.
showing
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3. The Foreign Secretary continues to believe that the patrol craft perform an important military role, as well as demonstrating our commitment to the defence of Hong Kong up to 1997. Chinese incursions over the last two years have
shown that they have much less respect for the Hong Kong
Marine Police. Without the Royal Navy there, it is-
inevitable that this challenge to Hong Kong's boundaries and
flouting of our sovereignty would intensify. In such
circumstances Police morale would suffer and we could face
other serious security problems.
4. Stephen Wall's letter to you of 24 July recorded that
the Prime Minister wished the question of finance to be pursued in the current PES round. In the light of the clear
advice from Hong Kong that they cannot find extra money
above the normal 65%/35% cost sharing arrangement the
Foreign Secretary sees no alternative to considering this as
a normal cost of defending one of our Dependent
Territorires. He therefore believes that the Defence
Secretary should bid for the additional funds, either in
this PES round or in 1993.
I am copying this letter to Stephen Wall (No 10),
Nicholas Holgate (Chief Secretary's Office) and Sonia Phippard (Cabinet Office).
5.
NOCACD/2
CONFIDENTIAL
Simon Gass
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