TNAG-2120-FCO40-3026-Hong-Kong-Garrison-future-of-the-Royal-Navy-presence-1990 — Page 63

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From: T J Brack Esq AUS (GF)

CONFIDENTI

DIL

IAL

MINISTRY OF DEFENCE

98/1/5/11

PAPER 3

GARl9

*

HKC 062/1

52

Main Building, Whitehall, London SW1A 2HB

Telephone (Direct Dialling) 01-218

(Switchboard) 01-218 9000

Ext 7525

D/AUS (GF)/2/3

Sir Piers Jacobs KBE Financial Secretary Hong Kong Government The Secretariat Hong Kong

Dear Piers,

22 October 1990

I understand from John Fraser that our Agenda for 3 December is now firming up and that you feel we will not have to talk about the funding of the RN Patrol Craft.

But the subject of the Patrol Craft does worry me. Maybe complete understanding can be reached before December, although time is now short. However in such circumstances, would not you and I be expecting to confirm the agreement formally, and if, for example, some changes were required in the 1981 side letter, to sign a new exchange of letters?

-

I appreciate that the Patrol Craft, governed by the 1981 letter, is indeed, with its financial and political connotations, an important subject, and thus one which we should perhaps approach outside of our 1988 DCA 6-monthly Review meeting. But I am convinced that (if there is no prior agreement) we ought to be discussing it. I know that my Ministers are very keen that we should resolve this very soon now and are expecting that the opportunity of my visit can be taken to achieve this.

I shall actually be (Middle Eastern events permitting) in Hong Kong privately from 26 November onwards. If you were to feel that we should indeed divorce any consideration of the Patrol Craft from the formal review, I am sure that I could make myself available for separate discussions at any time between 26 November and 5 December.

In conclusion could I assure you that I am only too conscious of the importance that the Governor and you attach to this sensitive issue as well as the paramount need to avoid any politically damaging suggestion of 'disagreements'. For my part I am concerned that there should never be an atmosphere of such disagreement, but I do feel, recognising the political and budgetary considerations that each of us has, it should nevertheless be possible to reach quite easily an understanding with which we can both be happy.

CONFIDENTIAL

Your

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