ARGUMEN
CONFIDENTIAL
In his minute of 18 September to the Defence Secretary,
Secretary of State argued that the most cost-effective solution
the problem of the replacement of ENDURANCE would be the outr purchase of POLAR CIRCLE. We have learnt however from shipping
sources that the Italian Government are interested in the
possibility of chartering the POLAR CIRCLE for several years from
the 1992/3 season onwards, when they will have the funds to do
We have heard from these sources that POLAR CIRCLE's owners-may
prepared to grant MOD a one-season bareboat charter but are likel
to reject the MOD's request for an option to purchase as being insufficiently firm. This will leave them free to negotiate
charter with the Italian Government. The first objective of the
Secretary of State's minute should therefore be to alert Ministers (especially the Prime Minister) to the possibility that there is a
danger that in securing the POLAR CIRCLE for this season, we may
lose her as the most cost-effective long term replacement for
ENDURANCE. We understand that MOD officials will be discussing the
availability of POLAR CIRCLE this afternoon so that time is of the
essence. The aim is therefore to persuade Ministers of the need to focus on the purchase option now, and commit funds to it.
6.
The MOD are however resistant to our argument that ENDURANCE
should be funded from defence funds and the Chief Secretary has
offered us no comfort either. Our aim should therefore be to widen
the discussion now to address the issue of MOD's responsibilities
for defending the Dependent Territories. Our argument should be that the Dependent Territories require defending; that the task
falls to the MOD and that the costs should be borne on the MOD
budget and on no other.
PH1ADE
CONFIDENTIAL
7.