CONFIDENTIAL

5. Details of our main out of Area commitments and deployments, together with an indication of proposed changes, are contained in the Annex to this paper.

MAIN AREAS OF CURRENT DEBATE WITH MOD

6. As the Annex indicates, no significant changes in our defence deployments outside NATO are envisaged as a direct result of the Options for Change review. There are however several outstanding issues over which we and MOD have a conflict of interests which have been given added impetus by the review.

HMS

7. An impasse has been reached over the MOD's proposed disposal of HMS Endurance from the British Antarctic Territory (Serial 1). Endurance has a symbolic and practical value. It is perceived by the Argentines, Falkland Islanders and other countries as the embodiment of HMG's commitment to our dependent territories in the South Atlantic. With its helicopters, the ship plays a unique role in support of the British Antarctic surveys research activities in the British Antarctic Territory, and in carrying out hydrographic surveys in the South Atlantic.

8.

The MOD had hoped to announce the scrapping of HMS Endurance on 24 June (in spite of an earlier decision that it would continue until 1995 and be replaced), but the Prime Minister intervened to say that the potential political cost outweighed the financial cost. of maintaining her in service. The MOD have since said that a technical report on HMS Endurance has revealed structural problems which would make her vulnerable in ice conditions and that she might not be deployed in the Antarctic this year in consequence.

9.

The proposed timings of the staged withdrawal of the Hong Kong Garrison (Serial 2) are based on the 1991 review of the withdrawal plan which recommended that the garrison remain "stronger for longer" ie the pace of withdrawal should be slower than earlier envisaged. The review is subject to approval by the Chiefs of

Staff.

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