MO 6/19/1D
FOREIGN SECRETARY
CONFIDENTIAL
SECRETARY OF STATE
IN Paul, HKD - Where next?
SERS
PS, Lord Caithness
PS/PUS
Si Ildes
M Goulden
FUTURE RN PRESENCE IN HONG KONG
Mr Burns Mr Smith NPDD.
!
Thank you for your minute of 4th July recording the disappointing outcome of your discussions with the Governor of Hong
Kong on this issue.
2. I note your intention to examine this issue in a wider context. I should say from the outset that, given my current budgetary pressures, if your review were to identify some other commitment which you believe we could give up, I should need to make botn savings. If withdrawal is to take place and be complete by 31st March, in accordance with our planning assumption, we must start taking appropriate action, and make some sort of announcement, almost immediately and certainly before the Summer recess. In the circumstances, although I can agree reluctantly to putting off a decision for a few days, I cannot let it run past 23rd July. Unless I can have an assurance by then that the defence budget will be compensated for at least the bulk of extra cost we would incur by
retaining the patrol craft until 1997, I see no option but to set the necessary machinery in motion to withdraw the vessels by 31st
March 1992.
16
3. I have sent copies of this to the Prime Minister and the Chief
Secretary, and to Sir Robin Butler.
Ministry of Defence
15 July 1991
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(TK)