SECRET

dence between the Commonwealth Secretary and Defence Secretary

in which the Foreign Secretary has joined. The political argu- ments are summarised in paras 67 of the Speaking Notes above.

One aspect is covered in a Top Secret Annex to this brief.

22.

During his recent visit the Governor suggested to the Chiefs

of Staff that a small fighter unit of Hunters might be provided

at greatly reduced cost if they could be backed by personnel of

the Hong Kong Auxiliary Air Force (which the Hong Kong Government

maintains from its budget) and maintenance could be provided through

the facilities of the Hong Kong Aircraft Engineering Corporation

(a British concern). He had it in mind that the Hong Kong

contribute to

Government would assume responsibility for the operating costs

Miloh & Key to unsical personnel

while the aircraft would be provided by H.M.G.

Would

The Chiefs of Staff

agreed to look into this proposal and it is being examined by the

Air Force Department of the Ministry of Defence.

23. From the starting point of an interdepartmental ruling that

Civil votes should reimburse Defence votes for the extra-budgetary

costs of forces deployed for internal security purposes, the some-

what specious argument is advanced that this must tend to equate

units with the full budgetary cost of such visits where it can be shown

that, but for these responsibilities, there "could be decreases in

our long term force structure".

24. The maintenance of internal security in our dependent terri-

tories is one of H.M.G.'s responsibilities and our force structure

must provide for the commitment it entails. It does not therefore

seem open to argue that H.M.G. could dispense with such forces

unless there is at the same time a conscious decision to withdraw

from the commitment.

25.

-

Dependent territories are held responsible for meeting the

cost of maintaining their internal security to the extent that

they are able to do so. This has meant that so far as possible

they have raised and maintained local police and military forces

(with

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