BRITAIN is hoping to send a full naval taskforce - an aircraft carrier, frigates and a nuclear submarine - to Hong Kong for the handover.
The taskforce will be involved in exercises off the Philippines in the summer of 1997 under an agreement signed yesterday in Manila by Secretary of Defence Michael Portillo and his counterpart, Renato de Villa.
London sources said the Royal Navy hoped to mark the handover with a show of strength in Victoria Harbour.
Although the Admiralty would love to leave Hong Kong on a grand note, China may feel such a British military presence in the territory could send the wrong signals.
It is still not known whether British vessels will be able to visit Hong Kong after the handover, but the Philippines agreement may well make it possible for British warships to visit that country regularly.
Under the deal, which could cause friction with China given the two countries' claims on the Spratly Islands, the 1997 joint exercises will take place in the Sulu Sea off the south of the country.
