SECRET
LORD CAITHNESS' MEETING WITH MR ARCHIE HAMILTON: ROYAL NAVAL
PRESENCE AFLOAT IN HONG KONG
Points to make
Concerned that MOD and HKG have been unable to reach
agreement over how to finance the cost of retaining the Royal Naval patrol boats in Hong Kong after 1992.
Sir M Quinlan's letter leaves very little scope for
compromise.
Well understand MOD's budgetary difficulties. But,
equally, very important for the presence to continue in Hong Kong both for political and military reasons.
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Political: the Chinese believe, rightly or wrongly, that
the patrol craft will remain in Hong Kong. It would send a bad signal to Peking about our commitment to Hong Kong if
they were to be withdrawn. Would be seen as signalling a
diminuation of our resolve to continue to administer Hong
Kong to 1997.
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Military: both the Governor and Commander of the British Forces in Hong Kong are concerned that there is sufficient
backup for the Marine Police during run up to 1997.
The DCA a sensitive issue in Hong Kong. Must try to avoid opening up old wounds. Most regrettable if every time there are any changes to the withdrawal plan, there would be a
reopening of the DCA financial arrangements.
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Sums involved not large MOD's share (35% of the running
costs) likely to be £7.5 million to 1997.
LEGAEI/1
CC
SECRET
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