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HONG KONG PATROL-CRAFT

SPEAKING NOTE

CONFIDENTIAL

Your minute crossed mine.

Continue to believe that we must consider Hong Kong

patrol craft in context of our other Out-of-Area

responsibilities, especially the defence of our Dependent

Territories as a whole. We have no blank cheques to offer.

An announcement before the recess about withdrawal of the

patrol craft would be particularly ill-timed. Many

observers here and some in Hong Kong have seen the Hong Kong

airport understanding announced on 4 July as a sell-out to China, comprising Hong Kong's autonomy and showing that the

UK commitment is dwindling. This would confirm the

impression of hand-washing. It would guarantee the Prime Minister a rough ride politically here and in Hong Kong when

he visits Hong Kong and Peking later this year. (Nor,

given Chinese suspicion of our motives, would it help the atmosphere for his visit to China.)

Lord Caithness will be in Hong Kong from 22 to 28 July.

Less than six years remain for us in Hong Kong : we

cannot afford to jeopardise our political and economic interests by short-sighted measures.

Should capitalise on

improved atmosphere.

CONFIDENTIAL

ARTAFS/2

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