TNAG-2239-FCO40-3218-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 150

HKB

SECRET

063/1

PS/Lord Caithness

Private Secretary

From: A R Paul

Hong Kong Department

Date: 4 June 1991

CC:

Sir J Coles

Mr Blatherwick

Mr Burns

Mr Gouldon

Head/NPDD

Head/RMD

Note

E

Refuered by

Lord C. Amended

and seat

No

7

June under PP

signatio

lox.

HONG KONG: ROYAL NAVAL PRESENCE AFLOAT: DISCUSSIONS BETWEEN

THE MOD AND HONG KONG GOVERMENT

• M

10/6

1.

Ministers should be aware that the talks between the

Hong Kong Government and MOD to try to resolve their differences over how to fund the Royal Naval presence in Hong Kong have failed. I recommend that the Secretary of State speaks to the Prime Minister to warn him of the implications and to enlist his support. If Ministers agree with this approach I will submit a short speaking note.

2.

The MOD position has hardened: they now will require a "very substantial contribution" to meet their additional costs if they are prepared to retain the vessels in Hong Kong. Hong Kong's position has not changed. They are not prepared to contemplate any solution which would result in the need to go back to the Finance Committee.

3. It looks as if no agreement between the MOD and HKG will be possible and that, if we wish to press for the retention of the patrol craft, a case will have to be made at Cabinet

level.

ROZAXD/1

SECRET

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