Redacted
under FOI exemption
SECRET
UK EYES A
27(1)
afloat presence is retained. The alternative would be to replace the Peacocks with Bird class patrol vessels which, although less capable than the Peacocks (for example they have only a limited ocean-going capability) would be cheaper in terms of running costs, (broadly speaking the annual costs of three Bird class vessels would be £1.5M compared with £2.5M for three Peacocks). There would however be some one-off costs associated with a change in the class of the vessel. You should note that if the Peacocks are withdrawn, the MOD is committed to crediting the Hong Kong government with 75% of the current market value (or in the event of sale, 75% of the net proceeds) although this would apply even if they were not withdrawn until the final phase of the garrison rundown in 1997.
4. We have some further work to do on the straight military .comparison of these options and will let you know the outcome of
this soon. In the meantime I should be most grateful for your
views
whether the political advantages of retaining RN vessels in Hong Kong are likely to justify the additional expenditure; and if so, on the options for providing the necessary funds. would be very helpful to have an FCO view by, say, mid November in plenty of time for the next Hong Kong Steering Committee meeting in January. For operational and programming reasons, it will be important to reach a final decision by June 1990.
X
SECRET
UK EYES A
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