TNAG-2240-FCO40-3219-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 59

FROM: Simon Gass

CONFIDENTIAL

TO:

S Webb Esq

PS/Secretary of State for Defence

FUTURE RN PRESENCE IN HONG KONG

1.

Thank you for copying to me your letter of 29 July to Stephen Wall.2, As the Prime Minister suggested

Pressed

(Stephen Wall's letter of 31 July) we have pursued with the

to find Hong Kong Government whether they could secure additional

funds to help you meet the cost of retaining the three patrol craft in Hong Kong As you know Hong Kong already pay 65% of the cost of the garrison, with the MOD paying the

remaining 35%.

B.

At our strong urging, Hong Kong have looked very hard

"However, for additional funds. But they have been unable to identify any such funds without going to the Finance Committee of the Legislative Council. It is the judgement of the Governor, which we share, that an approach to the Finance Committee

would not produce any new funds and would rebound very badly indeed This view has been reinforced by the success of the United Democrats of Hong Kong (led by Mr Martin Lee) in the

recent first direct elections to LegCo. "Liberals" now hold

22 of the 60 seats with a majority of the elected members,

and supporters on this issue in other parts of the Council.

The platform of the United Democrats includes a commitment

to "reduce the proportion of funds that Hong Kong provides

for the stationing of United Kingdom troops in the

territory".

NOCACD/1

CONFIDENTIAL