TNAG-0757-FCO40-961-Strength-of-UK-armed-forces-stationed-in-Hong-Kong-1978 — Page 247

CONFIDENTIAL

IAL

اايمه Axx

LOOSE MINUTE

AF/CT196/77

DS6 (Mr Aves)

Copy to:

RESSIVES

3 APR 1978

DESK OFFIC &

INDEX

PA

N, RS stir

DN Plans

DNOR

J

86

Head of DS4

Head of D31 COSSEC

FCO (Hong Kong Dept)

HONG KONG PATROL CRAFT

Reference:

A: B:

HKG letter SCR/57 dated 13 Mar 78 D/DS6/16/43/2 dated 22 Mar 78

1.

In paragraph 5 of Ref A the Hong Kong Government seek confirmation that they will receive a share in the receipts of the sale of the existing patrol craft, I can find no trace of consideration having been given to this prior to, or following, the DCA negotiations.

2. I agree that no undertaking of this nature should be given to the HKG until the eventual disposal of the craft has been considered by the Royal Navy. If it is decided that they have no operational value outside of HK waters. two alternative methods of disposal could arise (a) to be offered as a gift for use by RHKMP, (b) to scrap. the vessels (presumably in HK) and share the receipts. Alternative (a) could require, depending on the craft's value, Treasury and Parliamentary approval whilst (b) would possibly need Treasury agreement there being no provision for this situation under the terms of the DCA.

29 Mar 78

Dauoraan.

O D MORGAN

GF3b X 7491

COME DENTI

CONFIDENTIAL