TNAG-2239-FCO40-3218-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 38

HKD

& PS

PS/Lord Caithness Sir J Coles

Mr Broomfield

Mr Burns Esc/91/157 Mr Beamish

i

HKB 063/1

CONFIDENTIAL Mi

G

SECRETARY OF STATE FOR DEFENCE

Mr Goulden

NPOD Special

м

Pa Mr. Cox

Hong Kong Patrol Craft

Advisers Mornick w/T

WIAD

1.

4

Thank you for your minute of 10 June about the future of the RN patrol craft in Hong Kong.

2. I discussed this issue with the Governor of

Hong Kong during his recent visit to London. He remains

strongly of the view that there is a military requirement

for the patrol craft until 30 June 1997; and that if

patrol craft are withdrawn in 1992 we must expect increasing encroachment by Chinese patrol vessels into

Hong Kong waters. He also believes that seeking the approval of Finance Committee for a special arrangement for the patrol craft which went beyond the cost-sharing ratio agreed in the defence costs agreement would create a damaging political row.

3.

The Governor well understands the pressures on the defence budget, and has examained carefully whether there

are ways in which alternative solutions can be found,

including the idea of the HKG buying out the MOD's

capital interest in the craft and operating them

themselves. In his judgment, however, none of these are

workable.

CONFIDENTIAL

/4.