St.S.

NOTHING TO BE WRITTEN IN THIS MARGIN

97499

Registry No.

Top Secret. Secret.

Confidential.

Restricted. Unclassified.

DRAFT

To:-

Type 1 +

From

Telephone No. & Ext.

Department

of this letter is to enquire whether you would

agree with our view that a case exists for

H.M.G. to share the se costs with the HongKong

The Ministry of Defence have told

Government.

us that they do not consider that any part

of the costs would be a correct charge on their

votes since the charges arose in connexion with

the preservation of internal security in

KongKong. Our view is that although this

argument is right so far as it goes, the

fact is that the fence is primarily required

to meet a potential external threat posed by

Is this mean or

and and de

conditions in China. As such we feel that there

is a good case for part of the costs involved

to be met by H.M.G. and we suggest that an

equitable arrangement would be for the latter

to bear the costs of the materials required

for the fence, leaving HongKong to find the

balance of funds needed to cover all other

costs arising in connection with the project.

We should be grateful for your views on this

proposal.

I am copying this letter to Cass at the

Ministry of Defence.

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