as a whole after March, 1971. I mentioned this poubility

point to you when you were over here in October

and I understood you to say that from a

presentational point of view you would not wish

Freated

the cost of the fighter unit to be considered

separately (at any rate in Hong Kong) from that

of the general defence contribution, although

it might have to be negotiated separately

within that contribution.

It would be very

helpful to us in our approach to the Ministry

of Defence if you would say exactly how you

would wish us to deal with this point, and

particularly with the question of the timing of

the actual payment for the fighter unit in

respect of the one year's overlap with the

current defence contribution agreement (March,

1970-March, 1971).

to As regards the capital cost of the

aircraft, the fact that more than half the

proceeds of their sale have to go to America

is one of which we intend to make the fullest

use in pleading your case for a free gift, but

we should appreciate any additional ammunition

with which you can provide us. There can, we

feel, very little chance that the Ministry forego a credit of of Defence can be persuaded to accept the

defence

15

£140,000 as a debit in their budget and it may

well be that we shall have to plead Hong Kong's

cause in other quarters.

(A

Charme regard to

The light ceiling within which they

are required to.

operate)

NOTHING TO BE WRITTEN IN THIS MARGIN

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