SECRET
OG FEB 1991
13
HKB 063/1
ECF'
79991
FROM: A'R Paul-
Hong Kong Dept
DATE :
6 February 1991
cc:
Mr Burns
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Mr McLaren
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ROYAL NAVAL PRESENCE AFLOAT IN HONG KONG
1. Lord Caithness has agreed to speak to Mr Archie Hamilton (MoD) about the continuing deadlock between the MOD and Hong Kong over the financing of the patrol crafts. I submit a Speaking Note.
2.
The Governor has expressed profound disappointment (Hong Kong telno 386) with the letter which he has just received from Sir Michael Quinlan (attached). This makes it clear that MOD Ministers are not prepared to agree to the retention of the patrol craft after 1992 without a very substantial contribution from the Hong Kong Government towards the additional costs.
3.
It was agreed at this morning's meeting, chaired by Lord Caithness, that it would be appropriate to draw Mr Hamilton's attention to the contribution to Gulf burden sharing which the Governor and ExCo have agreed to make. However, in view of the uncertainty about the eventual size and nature of this contribution, I think it would be advisable to wait until we know the outcome of the Finance Committee's meeting on Friday 8 February.
4.
In practice this would mean deferring an approach to Mr Hamilton until next Monday at the earliest; and I so recommend.
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