TNAG-2120-FCO40-3026-Hong-Kong-Garrison-future-of-the-Royal-Navy-presence-1990 — Page 69

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SECRET

I had been on

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I don't think it

24 November 1990

is quite right

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Mr Bevan in new

AUSS MOD

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Imminent departure of the

Ms Paul

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The DCA team leeres on 2.3 November, may

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not due to start

to talks until Monday

3 December.

teame, I suggest you speak to

HONG KONG: ROYAL NAVAL PRESENCE FLOAT Mr Bevan

20/11

on the thephone, today ") possible

1. In view of your very heavy schedule at present, I thought it might be easier for you if I wrote to you on the vexed question of the continuing Royal Naval presence float in Hong Kong //I am becoming increasingly concerned about the stand off between the Hong Kong Government and the MOD over the question of funding of the naval patrol craft. Both you and the Hong Kong Government have every justification for taking the line that is being taken but the unfortunate result of this may be a political row with the Hong Kong Government quite out of proportion with the cost of a patrol craft or even more serious implications these be the Chinese and our position in Hong Kong, should the ultimate decision be to withdraw the patrol craft.

2. I fully understand the pressing financial problems which the MOD currently faces and is likely to face for many years to come. I also understand that you have always held that the decision to retain the patrol craft was a political one and not a military one, and subject to the putting in place of suitable financial arrangements. But I hope you will also appreciate that the Hong Kong Government faces equally difficult financial and political situation in Hong Kong and also stands on a matter of principle. In principle Hong Kong's view is that just because changes to the outline withdraw plan are made, this should have no bearing on the agreed crossharing bearing of the DCA: I support this position. Hong Kong Government would also have very grave difficulties about tempting to secure additional funding for maintaining the patrol craft. I think I need not remind you of the difficulties we had in securing Finance Committee's agreement to the 1988 DCA.

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3. I am seriously alarmed that if no agreement is reached between the MOD and HKG there is a risk that you will decide that you

no longer provide Hong Kong with the patrol craft. Echos of what happened over the Falkland Islands in 1981 are not necessarily so far fetched. The removal of the patrol

Way..

CVRAAP

SECRET