TNAG-2120-FCO40-3026-Hong-Kong-Garrison-future-of-the-Royal-Navy-presence-1990 — Page 60

布政司署

香港下亞厘畢道

SECRET

DIEU

LOCSEN

551

Pa

(55

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

GAR

本署檔號 Our Ref.: (62) in TSR 6/57

來函檔號 Your Ref.:

T.J. Brack Esq.

AUS (GF)

Ministry of Defence

Whitehall

London SW1A 2HB

Да

Terence,

31 October 1990

062/

HK C 062

д

0198

Sir Piers has asked me to thank you for, and reply to, your letter of 22 October 1990 about the agenda for the DCA meeting on 3 December 1990.

Although we were hopeful that it would be possible to resolve the question of the future funding of the patrol craft before the December meeting, Martin Howard's letter of 3 September 1990 has left us somewhat disappointed. Whilst we recognise that you would not wish to pass to us figures of doubtful acccuracy, I trust our point that MOD is better placed to provide the financial and logistical information on which an assessment could be made is not seriously disputed. If the information we have sought were to be forthcoming, this could provide a basis for discussion either before or at the December meeting.

I am a little perplexed about your reference to possible amendments to the 1981 side letter. You will recall from Ian Strachan's letter of 20 June 1990 to Richard Hatfield that we do not envisage being able to accept any formula which would result in the Hong Kong Government surrendering its interest in the depreciated value of the patrol craft, since such a formula would be unlikely to be acceptable to the Finance Committee of the Legislative Council.

Whilst we remain willing to consider any other arrangement which would assist you in meeting your share of future operating costs, and wish to be as helpful as far as possible in regard to detail, nobody should be under any illusions about the importance we attach to any future arrangements to be agreed between us being clearly within the agreed 65:35 apportionment. We could not accept an arrangement which resulted in Hong Kong suffering a net disadvantage in cash terms at the end of the day.

SECRET

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