SECRET
HK B 063/1
67
060167
MDHOAN 4131
SECRET
FM FCO
TO IMMEDIATE HONG KONG
TELNO 996
OF 23170OZ MAY 91
AND TO PRIORITY PEKING, UKREP JLG HONG KONG
65
YOUR TELNO 1552: ROYAL NAVAL PRESENCE AFLOAT
TOP COPY Q DIST?
1. WE HAVE TRIED TO GLEAN FROM THE MOD SOME IDEA OF THE SORTS OF OPTIONS THEY HAVE IN MIND FOR TAKING THIS ISSUE FORWARD. BUT WE HAVE SO FAR MANAGED TO OBTAIN ONLY A GENERAL INDICATION OF THEIR THINKING.
2. IN ADDITION TO REDUCING THE NUMBER OF PATROL CRAFT FROM THREE TO TWO, THE MOD ARE ALSO LOOKING TO REDUCE THEIR COSTS IN OTHER WAYS. THEY DO NOT THINK THAT THERE ARE MANY AREAS IN WHICH SAVINGS CAN BE MADE IN OTHER PARTS OF THE GARRISON. THEY THEREFORE WANT TO REVIEW SOME OF THE EARLIER IDEAS THAT WERE PUT FORWARD: FOR EXAMPLE THE POSSIBILITY OF HONG KONG PAYING A GREATER SHARE OF THE PATROL CRAFT, TO BE OFFSET BY A GREATER SHARE GOING TO HONG KONG OF THE SALE OF STOCKS UNDER THE PREVIOUS DCA.
3=
WE THINK THAT UNTIL ALL PARTIES SIT ROUND THE TABLE, THIS ISSUE IS NOT GOING TO BE RESOLVED ONE WAY OR THE OTHER. THE REDUCTION IN THE NUMBER OF PATROL CRAFT SHOULD, IN OUR VIEW, PROVIDE THE CORE OF ANY AGREEMENT AROUND WHICH OTHER IDEAS COULD BE ELABORATED. WE AND THE MOD HOPE THE HKG TEAM CAN COME NEXT WEEK AS PLANNED.
4. THE DEFENCE SECRETARY HAS NOT YET REPLIED TO THE FOREIGN SECRETARY, BUT WE EXPECT THE LETTER TO BE ON THE LINES OF PARA 2 ABOVE.
HURD
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