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MO 6/19/1D
23 JUL 1991
CONFIDENTIAL
SECRETARY OF STATE
Is Daud, HKD - Whore next?
PS Lord Caithness PS/PUS
Sú J Coles Mr Goulden
FOREIGN SECRETARY
FUTURE RN PRESENCE IN HONG KONG
Mr Burns Mr. Smith, NPDD.
Thank you for your minute of 4th July recording the disappointing outcome of your discussions with the Governor of Hong Kong on this issue.
2.
I note your intention to examine this issue in a wider context. I should say from the outset that, given my current budgetary pressures, if your review were to identify some other commitment
which you believe we could give up, I should need to make both savings. If withdrawal is to take place and be complete by 31st March, in accordance with our planning assumption, we must start taking appropriate action, and make some sort of announcement, almost immediately and certainly before the Summer recess. In the circumstances, although I can agree reluctantly to putting off a decision for a few days, I cannot let it run past 23rd July. Unless I can have an assurance by then that the defence budget will be compensated for at least the bulk of extra cost we would incur by retaining the patrol craft until 1997, I see no option but to set the necessary machinery in motion to withdraw the vessels by 31st
March 1992.
3. I have sent copies of this to the Prime Minister and the Chief
Secretary, and to Sir Robin Butler.
Ministry of Defence
15 July 1991
100% Recycled Paper
Li..
(TK)
CONFIDENTIAL
Macy's Min- Масук MrStone 1817
Await outcome of today's
possible meening
17/7
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