MR COR (HKD)
Mwen to me on 18/6 тини ожени
B.F. Ranken.
Me paul W20%
A spirited effort by
a
naval lobbyist
well known to SAAD. One de argument
in para 5 of attached papl
Mx 17th June 1991
Hist Jaker Walls (VAAD)
19/6 CONFIDENTIAL
2072
THE ROYAL NAVY PATROL VESSEL SQUADRON IN HONG KONG
THREATENED WITHDRAWAL AND CLOSURE OF NAVAL BASE BY MARCH 1992
Summary
Ms Cogni свой Vtylw
Despite the well-known deterioration in relations with the People's Republic of China (PRC) following the massacre in Tiananmen Square last June, the Defence Secretary intends to withdraw the Royal Navy's Hong Kong Squadron three patrol vessels and close the Naval Base in March 1992, as agreed in 1988; his "Options for Change," presented to Parliament in July 1990, aim to reduce the UK defence budget, and the small costs of the Hong Kong Squadron now appear therein as just one minor item that he intends to cut.
He is only prepared to withdraw this decision if the Hong Kong Government agrees very soon to take over all or most of HMG's 35% share of the costs of the Squadron and Base (They already pay the other 65%). The amount involved from April 1992 to the hand-over in 1997 is stated to total £15 million.
The Governor's credibility is under increasing pressure on account of very strained relations with the PRC, particularly over their continuing refusal to agree urgent proposals for financing the construction of a new international airport. His position would be undermined still further if he sought at this time the approval of his Council to pay the additional amount demanded; if he did ask, it is likely the Council would refuse, so further undermining his position. Announcement of withdrawal by HMG would have a similar effect.
With relations as they are today, withdrawal of the Royal Navy's presence in Hong Kong so long before 1997 would be highly detrimental to the Colony's confidence in Her Majesty's Government (HMG) and
(HMG) and could lead to further destabilisation, the accelerated exodus of professional people, businesses and capital, and further deterioration in relations with the PRC, which also fears political extremism arising out of any growth in internal unrest.
The Royal Navy carries out numerous tasks which could not be taken over by the Hong Kong police, and in addition represents publicly Britain's continued sovereignty over the Colony. The White Ensign is a very important symbol of the ongoing commitment of HMG to this maritime community in the years before hand-over in 1997.
The benefits to Britain's economy of Hong Kong's large-scale industrial and business activity are far greater than the modest £15 million cost to the UK defence budget spread over five years.
HMG should continue to pay this minor cost and undertake that the Hong Kong Patrol Vessels and Naval Base will remain in service until hand-over in 1997, unless otherwise agreed with the Governor and Colonial Government in the light of developments in Hong Kong in the meantime.
Mr store's
Catact?
Michael Janken.
M.B.F. RANKEN.
(RN-rer?)
W
m
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