SECRET
boats and the Governor has also indicated that if pushed too
he
far we would be prepared to lose the boats.
15. MOD are keen to bring the matter to a head soon; and
there is in any case a risk that the issue will become
overtaken by the wider questions in the MODS Operational
Plan. A further timing factor at the Hong Kong end is that
tenders will need to issue soon for the construction of a
new naval base on Stonecutters Island for the vessels (the
significance of this is that we hope that the Chinese will
be persuaded to use Stonecutters as their base after 1997).
If the vessels are withdrawn, the rationale for a new naval
base will fall away.
MOPADZ/5
ARPanc
AR Paul
SECRET
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