TNAG-2238-FCO40-3217-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 87

19 February 1991

Martin Howard Esq

Sec (0) (C)

Ministry of Defence Main Building

Whitehall

London

SW1

SECRET

HKB 063/1

Foreign & Commonwealth

Office

London SWIA 2AH

Telephone: 071-

Dear Martin,

HONG KONG: PATROL CRAFT: COSTS

I have been most grateful for your helpful advice on the telephone about the financing of the naval patrol craft. But

1.

I must confess that I am still unclear about some of the details of the estimate is for the period 1992-1997.

2. I understand that there are two elements: on the running costs of the vessels the MOD's share of which is estimated at about £7.5 million and the revenue foregone if the vessels are sold in 1997 instead of 1992 - the MOD's share calculation of which is about £7 million. Is this correct?

-

<

3. It would be very helpful if you could let us have a written breakdown of these costs. Mike Stone or I would be happy to talk to your financial people if this would help.

Youro Sincerely Alan Panc

A R Paul

Hong Kong Department

CH1BDH VAS

SECRET

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