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Note No. 6 A
1261
VISIT OF THE KINISTER OF STATE
(LORD SHEPHERD)
TO HONG KONG. WAY/JUNE 1969
DEFENCE: FIGHTER AIRCRAFT
It will be recalled that in May, 1968 Ministers approved a "proposal to station Hunter aircraft in the Colony, subject to further examination of the possibility that these aircraft might be manned and serviced from local resources." Subsequent studies indicated that local resources could be used for servicing but that local manning would not producs significant economies and were undesirable on grounds of efficiency. Detailed proposals have been put forward by the Ministry of Defence, on the basis that no part of the cost should full on Defence votes, and these have been the subject of an exchange of views with the Governor who wishes to discuss the Batter during the Minister's visit.
2. The background and issues involved are set out in the attached minute (Annex A) and in the correspondence with the Governor (Annexes B and C).
3. The crux of the matter is the proposal to station the aircraft in the Colony in 1970 rather than 1971. The Governor has stated the political and tactical reasons why he could not attempt to obtain a Hong Kong contribution to the cost in 1970/71 (although he does suggest that it might be possible to take retrospective account of a Hong Kong contribution in respect of that period when negotiating the level of the post-1971 defence contribution). We for our part see no prospect of satisfactorily resolving, in Hong Kong's best interests, the question of the Hong Kong contribution for 1970/71 and thereafter (short of an undertaking by Hong Kong to meet the entire capital and running costs) except in the context of a decision on where the costs should be borne of the enhanced post-1971 garrison as a whole (paragraph 5 of Annex A).
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