TNAG-2120-FCO40-3026-Hong-Kong-Garrison-future-of-the-Royal-Navy-presence-1990 — Page 131

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MrStone

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126

CONFIDENTIAL

517 MAY 1930

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FROM:

A R Paul

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Hong Kong Department

DATE:

17 May 1990

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HONG KONG: ROYAL NAVAL PRESENCE AFLOAT

Mr McLaren

Mr Burns

HKC O62 RECEIVED IN REGISTRY

062/1

2 1 MAY 1990

Zrawer

24

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7:25

A 1. Please refer to Mr Stone's submission of 11 May. As you will

recall, I sent a telegram to the Governor to seek confirmation of the agreement which MOD officials believed they had reached with the Hong Kong Government about arrangements for the financing of the

continuing presence of the Royal Naval patrol craft.

2.

I attach Sir David Wilson's reply, from which it is clear that

the two sides are still some way from reaching agreement, although

Mr Hatfield's visit to Hong Kong does appear to have achieved some progress. The Hong Kong Government will be writing to the MOD with

proposals for them to consider. We will continue to watch matters

closely and will need to consider whether, and if so how, the FCO

should intervene.

25

C

3. In the meantime, a reply from Mr Maude to the Governor is still

outstanding. I continue to believe that it would be sensible to

delay a reply until matters are a little clearer. I should be

grateful to know if the Minister would be content with this.

BODACM

AR Panc

A R Paul

CONFIDENTIAL