Registry No.

DEPARTMENT

Hong Kong

SECURITY CLASSIFICATION

Top Secret

Secret

Confidential Restricted Unclassified

PRIORITY MARKINGS

(Date)

*

Despatched

Immediate}

Priority Routine

PRIVACY MARKING

In Confidence

[Security_if any

Security classification

En, Clair.

[

Privacy marking -if any

]

*

Date and time (G.M.T.) telegram should

reach addressee(s).

10/6

0259-

PHER

SECRET

9/6.

NOTHING TO BE WRITTEN IN THIS MARGIN

[Codeword—if any]

GOVERNOR HONG KONG

Addressed to

telegram ..............

382

And to

Code

Cypher

Draft Telegram to:—

Governor

Hong Kong

Ng

(Date)

And to:-

916.

repeated for information to

(date)

Saving to..........

Your telegram No. 447.

Repeat to:-(28

Flag B:

Fighter Aircraft.

Saving to:--

Distribution:~~

as for Hong Kong telegram No. 447

Copies to:-

Flag A

(10)

Following from Carter.

Ministry of Defence have agreed to

let matter rest until after Defence Secretary's visit

to Hong Kong and their brief for him will take into

Views expressed account peinse made by Lord Shepherd as mentioned in

your paragraph two.

12.

In Moreton's absence, question of how capital and

recurrent costs are to be met has not been further pur-

sued but we understand that financial advisers in

Ministry of Defence take the view quite categorically

proposed that, capital charge for aircraft must be £300,000 and

not repeat not £140,000. This is apparently because

payments to the United States Government (see paragraph

six of my letter of 18 February) in fact go into a

special fund which is ultimately used in aid of our

defence budget: we have no further information about

this aspect.

1.

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