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that
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Redacted under FOI exemption section 27(1).
5. My assessment is there is in fact no military need for the vessels: they are required more as a comfort for the Marine Police. In any event we will get a short shrift from Cabinet if we try to argue against the MOD on these grounds. The only grounds therefore are political. I do not believe we would have real difficulties in Hong Kong if we withdraw the vessels.
''The question therefore
is how serious would it be to our relations with China over Hong Kong at this current time if we had to inform the Chinese that the vessels were being withdrawn.
6.
This could of course play extremely badly.
At the same
time as informing the Chinese of the vessels being withdrawn, we would obviously tell them that the new base on Stonecutter was not being built. The Chinese could read this in the worst possible light, and given our current difficulties with them
7.
they might well do so.
However the situation need not play so badly.
I also think that it would certainly
be open to Hong Kong now to reconsider the whole question of the Wanchai reclamation. The reclamation associated with infrastructure links to the airport does not impinge on HMS Tamar. The need for the other reclamation is financial, Firstly (s ale of land and secondly to improve traffic flow. Certainly at present Central District is over supplied with office space and the reclamation is not required. There is also the lingering worry that, leaving aside any problem over the Royal Naval presence, if we proceed with the reclamation, the Chinese may make it know
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