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Dependent Territories in the South Atlantic (ie South
Georgia, South Sandwich Islands and the BAT as well as the Falkland Islands). Just as important is the practical role of the ship both in supporting our claim to the BAT against competing claims by Argentina and Chile (both of whom demonstrate their presence through their armed forces) and in enabling the British Antarctic Survey to carry out scientific work in areas it could not otherwise reach.
5.
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It is being argued that, with the garrison and the airport, the Falklands no longer derive any real defence benefit from HMS Endurance. The Islanders and the
British press and public do not see it that way. I was struck, for example, by the strength of feeling in the Lords when the future of Endurance was raised by Lord Shackleton on 10 July (I enclose a copy of the Hansard). Taking our defence and political interests in their broader sense, I would rate the continuation of HMS Endurance (or if necessary a second hand replacement) as of higher priority than some other aspects of the garrison. It may therefore be more profitable for HMG to look for savings in the size of the Falklands garrison.
6. As for Hong Kong, as I have explained in previous correspondence, I have no doubt that the patrol craft continue to perform an important military and political function. Their premature withdrawal would send the wrong signals, both locally and to the Chinese. It is clear from discussions which the Prime Minister and I had with the Governor in June that, for financial and political reaons, solutions involving additional finance from Hong Kong are not feasible. To press this case would carry the false implication that there is no British but only a Hong Kong interest involved. It would
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