TNAG-2238-FCO40-3217-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 95

SECRET

A Hamilton Esq MP

Minister for the Armed Forces

Ministry of Defence

ROYAL NAVAL PRESENCE IN HONG KONG

I thought it might be helpful if I set out in

writing the main points I made in our conversation on

12 February.

As you know, I am very concerned that no agreement

has yet been reached with the Hong Kong Government about

the financing arrangements for the retention of the Royal

Navy patrol craft in Hong Kong beyond 1992.

Sir Michael Quinlan's letter of 4 February to the

Governor leaves very little scope for compromise.

I hope and believe that we can start from the

premise that we would all like to find an acceptable

basis on which to retain these vessels. The CBF sees a

strong military case for this; and a recent JIC

assessment of the threat to Hong Kong highlighted the dangers posed by the increased number of incursions by

Past is evitert it. Chinese vessels into Hong Kong waters last year.

The

SECRET