TNAG-2240-FCO40-3219-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 60

There is no question of their supporting an increase in the proportion which Hong Kong pays: for us to propose this would play into their hands, greatly complicate the

relationship between HKG and LegCo and give them the

opportunity to press for a reduction in the overall amount paid by Hong Kong towards the garrison which would be a popular position locally.

showing

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3. The Foreign Secretary continues to believe that the patrol craft perform an important military role, as well as demonstrating our commitment to the defence of Hong Kong up to 1997. Chinese incursions over the last two years have

shown that they have much less respect for the Hong Kong

Marine Police. Without the Royal Navy there, it is-

inevitable that this challenge to Hong Kong's boundaries and

flouting of our sovereignty would intensify. In such

circumstances Police morale would suffer and we could face

other serious security problems.

4. Stephen Wall's letter to you of 24 July recorded that

the Prime Minister wished the question of finance to be pursued in the current PES round. In the light of the clear

advice from Hong Kong that they cannot find extra money

above the normal 65%/35% cost sharing arrangement the

Foreign Secretary sees no alternative to considering this as

a normal cost of defending one of our Dependent

Territorires. He therefore believes that the Defence

Secretary should bid for the additional funds, either in

this PES round or in 1993.

I am copying this letter to Stephen Wall (No 10),

Nicholas Holgate (Chief Secretary's Office) and Sonia Phippard (Cabinet Office).

5.

NOCACD/2

CONFIDENTIAL

Simon Gass

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