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Mc laul For consideration
HONG KONG: ROYAL NAVAL PRESENCE: FINANCIAL ARRANGEMENTS
2512
Points to Make
Concerned that MOD and Hong Kong Government have been
unable to reach agreement on how to finance the cost of
retaining the Royal Naval patrol craft in Hong Kong after
1992.
DCA is a very sensitive LegCo. He is willing to
Governor's problems very real.
issue in Hong Kong with ExCo and
look at any realistic options which avoid having to reopen
the DCA financial arrangements: but could not go back to
LegCo on this.
Recent generous donation of £15 million to UK Gulf effort,
hard won. Will not be understood in Hong Kong if HMG now
fund declines to launch "its share" of vessels.
But local issues are not prime concern. There are strategic questions for HMG at stake. Chinese believe, right or wrongly, that patrol craft will remain in Hong Kong. It will send a bad signal to Peking about our commitment to Hong Kong if they are withdrawn. Would be seen there and in Hong Kong as signalling a diminuition of our resolved
to continue to adminster Hong Kong up to 1997.
-
- The Chinese military threat is real-witness in Cursions last spring. History of the 1980s underlines folly of
a
signalling and lowering of our guard in this way (Falklands:
HMS Endurance).
Hope that both sides can enter negotiations with a view to a realistic compromise. If this not possible, clearly
need full Ministerial discussions. Cannot allow a decision
ROFAQW/1
CVL
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