CONFIDENTIAL

are attempting to secure a bare boat charter for this season on POLAR CIRCLE together with an option to purchase. However, it is known in shipping circles that the Italian Government are in contact with the owners of the POLAR CIRCLE with a view to leasing her for a

period of years from the 1992/3 season onwards. If POLAR CIRCLE's owners grant a single season bare boat charter to MOD but do not agree to grant an option to purchase, (since an "option" would not constitute a firm enough commitment to purchase and would restrict their hands in dealing with the Italian Government), we may; to our embarrassment, secure our short term objective at the cost of the long term solution. We therefore need to decide now to secure the long term.

5. I noted in my minute to you of 15 July, "ENDURANCE has an

obvious political and defence symbolism. It is seen by the Argentines, Falkland Islanders and other countries as the embodiment of HMG's commitment to all our Dependent Territories in the South Atlantic", all of which are subject to significant territorial disputes (which involved us in extensive military hostilities in 1982). Her role in the Antarctic, where our claim to the British Antarctic Territory is contested both by Chile and Argentina (with the support of their Armed forces), in providing a clear expression of our willingness to deploy military assets in defence of British sovereignty over the BAT is equally important. Other Departments cannot reasonably be expected to pay for such a military role, in defence of contested national sovereignty, in the South Atlantic any more than they could in the North Atlantic.

6.

This concern about securing a long term replacement for ENDURANCE reflects my wider concerns about the defence of our Dependent Territories. Both the defence of the realm and the defence of the Dependent Territories are, the proper responsibilities of the Ministry of Defence. Both the

responsibility and the costs of discharging this responsibility should fall also to the Ministry and other Departments should not be

asked to pay.

7. In the particular case of ENDURANCE, a public commitment to replace her was made to Lords Shackleton and Buxton in 1989 by the

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CONFIDENTIAL

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