CONFIDENTIAL
SECRETARY OF STATE'S BILATERAL WITH DEFENCE SECRETARY,
11 APRIL 1991: HONG KONG PATROL CRAFT
Points to make
Understand financial pressure to withdraw the three Peacock class patrol craft in 1991/92.
- But strong political arguments:
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Current mood
bad for Hong Kong confidence in UK commitment (and bitterness after £15 m Gulf contribution).
fragile.
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Chinese will see a trick to make it harder for them in
1997 to install the PLA garrison with naval element a key political concern for them.
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practical problem of incursions by Chinese gun-boats, ignoring Marine Police instructions.
media may raise Falklands precedent.
- Difficult MOD/HKG official discussions. Bad feelings over 1988 Defence Costs Agreement (DCA) row: Governor believes impossible to persuade LegCo Finance Committee to contribute
more than DCA 65%.
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Have asked Governor to reflect imaginatively on accounting
solutions. But essential that MOD also show flexibility and
imagination if we are to reach agreement.
BAGAFM/1
CONFIDENTIAL
CC
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