TNAG-2240-FCO40-3219-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 110

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CONFIDENTIAL

SECRETARY OF STATE

Mr. Smith, WPDD

CEPS

PS/Minister PS/PS

for

Heado: Hu

LAD

SAAD

150

Mr Browfield

Mr. Faincatter

MO 6/19/1J

HKB 063 / 1

Si Jole

BED

Mr Westa

31 JUL 1991

FOREIGN SECRETARY

M Goulder Ливито in Beamish n Greenstadho

OUT OF AREA DEFENCE COMMITMENTS AND THE FUTURE RN presence IN

HONG KONG

(136)

Thank you for your minute of 15 July about Out of Area defence commitments. I have also seen your minute of 19th July to the Prime Minister and the Chief Secretary's minute of 23rd July.-

(1+9)

2. I naturally share your concern that we should provide appropriate security for our dependent territories. Although the change in the threat in Europe has no direct impact on the dependent territories, Options for Change has set the broad level of both

physical and financial resources which will be available in the

future for meeting all our defence commitments. The reductions in the size of the Armed Forces and the pressures on the defence budget both mean that I am facing many difficult decisions about how we

meet individual future out of area commitments. Of course, we also keep our commitments under review in response to changes in local circumstances and as you know we have had to take on a number of new commitments in support of foreign policy objectives in the last year. With this as background, I turn to the particular commitments to which you refer.

Hong Kong Patrol Craft

3. On the Hong Kong patrol craft, there is little I can add to my previous letters of 10th June and 15th July, which crossed with yours. I should re-emphasise, however, that in this case I am

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