SECRET
SECRET
FM HONG KONG
TO PRIORITY FCO
TELNO 1278
OF 270516Z APRIL 91
INFO PRIORITY PEKING, UKREP JLG HONG KONG
150601
MDLIAN 6820
С
PERSONAL FOR PAUL, HKD FROM GOVERNOR
YRTELNO 754 (NOT REPEATED ELSEWHERE): HONG KONG PATROL CRAFT
1. TUR SUGGESTS THAT THE BALL IS NOW IN THE DEFENCE SECRETARY'S COURT. I LOOK FORWARD TO HEARING WHAT FOLLOWS FROM HIS AGREEMENT TO LOOK INTO THE PROBLEM.
2. MEANWHILE WE HAVE BEEN LOOKING AT ALL POSSIBLE WAYS IN WHICH THE COSTS TO MOD OF RETAINING THE PATROL CRAFT AFTER 1992 MIGHT BE REDUCED. THIS EXERCISE INCLUDED CONSIDERING WHETHER IT WOULD BE FEASIBLE TO IDENTIFY TASKS THAT ARE BEING UNDERTAKEN BY THE GARRISON IN SUPPORT OF THE CIVIL POWER WHICH MIGHT BE EXCLUDED FROM THE 65:35 DCA FUNDING MECHANISM AND TREATED AS EXCEPTIONAL ASSISTANCE AND PAID FOR 100 PERCENT BY THE HKG.
3. WHAT COMES OUT OF THIS EXERCISE IS THAT THESE TASKS INVOLVE ASSISTANCE WITH OPERATIONS AGAINST ILLEGAL IMMIGRANTS AND SMUGGLERS. THESE ARE CLEARLY WITHIN THE AMBIT OF THE DUTIES WHICH THE DCA STATES SHOULD BE FUNDED ON A 65:35 BASIS. ALSO, THE ARMY AND ROYAL NAVY HAVE BEEN CARRYING OUT THESE ACTIVITIES FOR A NUMBER OF YEARS. IT WOULD BE DIFFICULT TO PRESENT A CONVINCING CASE TO FINANCE COMMITTEE THAT THEIR ROLE HAD SUDDENLY CHANGED TO THE POINT WHERE 100 PERCENT HKG FUNDING WAS JUSTIFIED. ONLY IF ADDITIONAL RESOURCES WERE DEPLOYED TO HONG KONG SPECIFICALLY FOR THESE TASKS MIGHT IT BE POSSIBLE TO ARGUE WITH ANY PLAUSIBILITY THAT THERE WAS A GOOD CASE FOR US TO PAY 100 PERCENT. SO THIS ROUTE DOES NOT SEEM TO BE A STARTER.
4. AS AN ALTERNATIVE, WE HAVE LOOKED AT SAVING MONEY BY REDUCING THE COSTS OF THE PATROL CRAFT THEMSELVES. THE OBVIOUS WAY OF DOING THIS IS TO REDUCE THE NUMBER FROM THREE TO TWO. EVEN IF THREE CREWS WERE RETAINED (AND IT MAY BE POSSIBLE TO OBTAIN ADDITIONAL SAVINGS BY REDUCING MANNING LEVELS BELOW THIS) A REDUCTION IN THE NUMBER OF PATROL CRAFT MIGHT REDUCE TOTAL OPERATING COSTS BY 15-20 PERCENT, OR APPROXIMATELY HKD 25 MILLION
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