TNAG-2240-FCO40-3219-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 6

SECRET

SECRET

FM FCO

TO PRIORITY HONG KONG

TELNO

2139

OF 10160OZ DECEMBER 91

INFO PRIORITY PEKING, JLG HONG KONG

HKB 063/+

192

077141

MDLOAN 1732

RN PRESENCE IN HONG KONG

1. YOU WILL BE PLEASED TO LEARN THAT THE QUESTION OF FUNDING FOR THE CONTINUED RN PRESENCE IN HONG KONG APPEARS TO HAVE BEEN SATISFACTORILY RESOLVED. THE TREASURY HAVE AGREED TO GIVE THE MOD EXTRA PROVISION IN THIS YEAR'S PUBLIC EXPENDITURE SURVEY ROUND AND THIS IS EXPECTED TO CONTINUE IN FUTURE YEARS. BUT, AS RESTATED IN THE LETTER FROM THE PRIVATE SECRETARY TO THE DEFENCE SECRETARY (NOW FAXED TO PS/GH), THE MOD CONTINUE TO SEE THE DEFENCE CASE AS VERY WEAK11.

2. WE HOPE THAT THIS CONCLUDES THE MOD'S EFFORTS TO WRING MORE THAN THE AGREED DCA CONTRIBUTION FROM HONG KONG: BUT THE 1991 REVIEW OF THE GARRISON WITHDRAWAL PLAN SUGGESTS THERE MAY BE FURTHER SCOPE FOR DISPUTE. WE MUST CLEARLY DO ALL WE CAN TO PREVENT THIS.

HURD

YYYYY

LIMITED 6

HKD

NPDD

FED

9

4

PS/LORD CAITHNESS

SIR J COLES

MR BURNS

MR GOULDEN

[COWAN]

NNNN

PAGE 1 SECRET