TNAG-0758-FCO40-962-Strength-of-UK-armed-forces-stationed-in-Hong-Kong-1978 — Page 234

HONG KONG

CONFIDENTIAL

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NOTE OF MEETING ON 13 SEPTEMBER 1978

Reference..........

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AUS(GS), 301/78

Hick

RECEIVED IN REGISTRY NO. 51

1 @ SEP 1978

RUN OFFICER INDEX

for

REIS RY

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157

Ir. Davies,

I had a discussion with the Secretary at which the Hong Kong High Commissioner'in London, Mr. Bray, was present.

Replacement of Patrol Craft

2. We discussed the replacement of Hong Kong Patrol Craft. Mr. Davies is quite clear that these ships are purchased by and for the Navy, even though the Hong Kong Government is involved in paying for them. He is content with the development of the NSR and awaits papers from MOD which can serve as the basis for a presentation to the Finance Committee and Executive Committee in Hong Kong this October/November. The presentation will have to deal inter alia with the need for a one for one replacement and he believes that the question may be raised by the Unofficials as to what framework is to be agreed for payment for the vessels. the last point I said that matters were not sufficiently advanced but that I thought a formal agreement might not be necessary, and that an exchange of letters might serve. He raised the point about construction of the craft in Hong Kong. He believes that theHong Kong Government is relaxed about this but would prefer Hong Kong firms to have the opportunity to refuse to tender rather than for the Hong Kong Government to have to agree that the craft were to be built in the UK. I emphasised that the problem was as much a matter of acceptance trials as of construction. I explained that the replacement of patrul craft was, except in regard to policy and finance in relation to the DCA, a matter for AUS(NS).

Osborn Barracks

3. Mr. Davies agreed that the first requirement was to produce a rational plan for the site. The question of how the NAAFI works services were financed could then be considered. He had no pre- conceived views on the matter.

LOA

4. Mr. Lavies said that the Hong Kong Government accepted a second extension of the moratorium on LOA review, but that he doubted if any further extension would have an easy passage with the Financial Secretary. He hopeu for news of a review to take place in 1979. I said this expectation was not unreasonable.

Gurkha Battalion

5. Mr. Davies accepted that the present time was not the occasion to raise the need for an additional Gurkha battalion in Hong Kong and that CBFHK could not participate in any study of this nature. The outcome of the Brunei negotiations had removed Hong Kong's anxiety about early reinforcement at least until 1983. Given the lead time for works he felt that if the situation post- 1983 was to be resolved on the basis that there might be an extra battalion in Hong ..ong, it was important to reserve sites and resources in 1979. I said that the only basis on which the

CONFIDENTIAL

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