CONFIDENTIAL
SECRETARY OF STATE
4. We believe that this could offer a genuine solution for both
sides. It would not involve any breach of the terms of the formal Defence Cost Agreement between the HKG and MOD (a prime HKG objective), it would be entirely consistent with the policy of handing over increasing responsibility to the Hong Kong maritime police, and would reduce the overall cost of operating the vessels. The exact extent of the savings would, of course, depend on the degree to which RN personnel continued to be employed and the way in which the craft were operated. Nevertheless, we believe that the HKG would be able to make significant savings which could even make this option financially comparable with their share of the existing
costs. The HKG team will now report to the Governor and have
undertaken to let us know the outcome rapidly I must make it clear
that unless we can be relieved of the additional costs of running on these vessels in Hong Kong I must proceed with their withdrawal at the end of the financial year. While I recognise the political concerns in Hong Kong, the pressures on the defence budget are now such that it would be quite wrong of me to accept a substantial new commitment in the absence of a clear military need which would result directly in a further unpalatable cut elsewhere in the defence programme.
5. I am sending copies of this minute to the Prime Minister and the Chief Secretary to the Treasury, and to Sir Robin Butler.
Ministry of Defence 10th June 1991
100% Recycled Paper
CONFIDENTIAL
3
T K
No comments yet.
Private notes are available after approval.