Origiantess HKIL 10/9
걍~ 색이 이
This Copy for:
HAKKIO/
Interes en clay/Action on Para(s)
*
20
lags and D
Mr. Moreton
Mr. Gaminara's minute below sets out the background to the exchange of letters with the Governor about the repositioning of fighter aircraft in Hong Kong.
2.
3.
The Ministry of Defence proposals are, briefly :-
(i)
a squadron of Hunters could be positioned in Hong Kong in March 1970 when one is due to be disbanded in the process of withdrawal from Singapore;
(ii) it would be a condition of its establishment that Defence
votes would not have to bear any of the running costs relating to the unit from that date (estimated to be of the order of £335,000 p.a.) and that Hong Kong should pay in
respect of the capital cost of the aircraft, an amount (£140,000) equivalent to the net credit that would have
accrued to Defence votes had the aircraft been sold
elsewhere.
In his letter the Governor makes four main points (a) He asks whether we must accept the Chiefs of Staff
stipulation that no element of the costs of this unit should be borne on Defence Votes, querying in this context Hong Kong's assumed liability for both the entire
operational costs and the element of capital expenditure in respect of the aircraft.
of costs could be reopened.
(b)
He enquires whether the issue
Hong Kong opinion would be outraged if the Colony were
asked to make a capital payment for the aircraft. He implies that it would be impossible for him to pursue the
matter at all on this basis, although he does not exclude the possibility (paragraph 7(b)) of meeting this charge
indirectly, within the context of a new defence contribution agreement (see (c) below). To demand this capital payment would have very adverse effects on the
position of the Forces in Hong Kong.
/ (c) ..