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RECEIVED IN

REGISTRY MS. 51 -3 JUL 1969

ARK 109

K.271:

X

Reference....

Mr. Carter Carter

Mr. Gamfara

I have arshad Ar. Norelion

Copy to:

Sir A. Galsworthy Mr. R. A. Sykes

for an opportunity to discuss the

andreame of

Div. Healer's visit, X, 4.2 bolew

wa 917 ore interesting.

Mr. Cooper (MOD) gave me today the following

account of Mr. Healey's discussions in Hong Kong.

Fighters

2. The Governor had not departed from his previous line i.e. that the fighters were necessary but that it was not possible for him to make any additional financial contribution in respect of them before the expiry of the current agreed defence contribution in April 1971. I asked if there had been much discussion of the compromised proposal that the costs up to April 1971 should be temporarily borne by the Ministry of Defence but subsequently taken into account when negotiating the new defence contribution. Mr. Coopel said that this had been touched on but not pressed. It had been left that the whole proposition would be looked at afresh in London after Mr. Healey's return. Mr. Cooper's own assessment was that the proposal to station fighters would fall through.

Post-1971 Defence Contribution

On

3. Mr. Cooper thought that the Governor had been careful not to press the issue of fighters because he was anxious not to prejudice his own position in regard to the post-1971 defence contribution. that, the Governor had suggested that when the time came he should put a proposition to us. He argued against attempting to make the artificial distinction between troops required for internal security and external defence. Mr. Cooper thought that the Governor might start with an offer of £6 million and be pushed to £8 million. He had warned the Governor that we were thinking in terms of £13 million, which had produced the expected reaction.

Helicopters

4. Mr. Cooper thought that the proposal to station additional helicopters to give a complete platoon lift would go through in due course.

For defence contriten tur ofte.

R&R be

ANG

167-09.

YokowĽ

(J. 0. Moreton)

3 July, 1969

CONFIDENTTAL

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