TNAG-2240-FCO40-3219-Future-of-Hong-Kong-Royal-Navy-presence-1991 — Page 80

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FROM: P F Ricketts

Hong Kong Department

DATE: 1 October 1991

cc: Mr Stone

? fear (the "Sir Diand's iden (lädenist scholarining money. xa

to subsidize the frijoles), will not work! But I find X a bit odd. Can you

Mr Burns

Mr Dew, RMD

throw any light on why M61) are now so relaxed and

an why there is so much hifor 1997

RN PRESENCE IN HONG KONG

1.

You asked recently where things stood on this subject and whether we should chase Hong Kong.

2.

Mr Stone has kindly done some research. His minute below explains (and the financial side of the office confirm) that the MOD are not pressing for the FCO or Hong Kong to come up with the money provided they get it before 1997. They do not appear to have bid for it in the current PES round. Neither has the FCO.

3.

I am uneasy about letting matters rest in this state. The Ministerial correspondence ends up with the letter from No. 10 of 31 July (attached) which leaves the ball in our court to continue to press the HKG hard for a further contribution to the costs of the patrol craft. HKG have not yet come back to us with any details of the ideas Sir D Ford discussed with you, despite a reminder in late August.

4.

The Governor has said that he wants to discuss the issue while he is here in mid-October. I suggest the first step should be for us to ask Sir D Ford when we see him on 4 October what has happened to his ideas.

5.

Following the Governor's visit, I think we should go back to No. 10 to make clear (if this is the case) that HKG see no prospect of any greater Hong Kong contribution to the costs of the patrol craft (the UDHK platform talks about a reduction in the amount paid by Hong Kong for the stationing of UK troops). We shall need to decide with the financial experts whether we use that letter to make clear that we expect the MOD to continue to bid for these costs in their PES proposals. It would be unsatisfactory to leave the Ministerial correspondence with the ball in our court to find a solution. Although the MOD may be relaxed about when they receive the money, they are bound to return to the charge at some stage and would exploit any apparent failure on the FCO's part to follow up the Prime Minister's instructions to press the HKG.

PF Ricketts

Malette

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*

70

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