TNAG-1941-FCO40-2767-Future-of-Hong-Kong-defence-and-public-order-1989 — Page 37

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

SECRET UK EYES A

d. 'Review residual matters arising from CDS 10/83 and

report these to the COS in the next Annual Report.' Paragraphs 84 and 85 address this remit.

e.

In

'Review the Terms of Reference for the OOACG.'

the light of experience now gained by the Group, work on this has gone forward during the period of the Review, and

the newly revised Terms of Reference appear at Annex J. Only minor amendments have been considered necessary.

6.

Although some of these topics remain to be brought to a

satisfactory conclusion, the problems have been clearly

identified and the necessary work put in hand to affect their

early resolution.

DEFENCE RELATIONSHIPS

REGIONAL DEVELOPMENTS

7.

The two most significant political / military developments

that have influenced defence relationships between the UK and the

OOA countries in 1989 can be summarized as follows:

a.

Arms control discussions and the shift in emphasis to

negotiations on conventional weapons which has converted a

hitherto extended and relatively pedestrian debate into a

high profile and dynamic issue which will have substantial

repercussions on OOA business. The resources allocated to

our NATO commitments have traditionally served our OOA

interests well by providing us with a balanced and versatile

capability. Reductions to the NATO commitment which result from CFE, will bring with them irrestible pressures for

reductions in the defence budget. In such a financial

climate, funding of defence projects purely for 00A interests will not necessarily attract high priority.

b. In the Caribbean and off the eastern seaboard of the

USA, the new US Administration has been formulating measures

SECRET UK EYES A

3

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