CYPHER CAT A
PRIORITY GOVERNOR HONG KONG
TELEGRAM NUMBER 875
SECRET 24/W5ECZ
SECRET
то FOREIGN AND COMMONWEALTH OFFIDE
24 DECEMBER 1973
.OP COPY
APTRESSED TO FOREIGN AND COMMONWEALTH OFFICE, LONDON TELEGRAM
NUMBER 875 OF 24 DECEMBER 1976
LAST
REF.
1.04
NEXT REF.
106
FOR LAIRD FROM GOVERNOR
YOUR TELEGRAM 848.
THANK YOU FOR THIS WARNING. IT DOES NOT SURPRISE ME THAT MOD.
AND TREASURY SHOULD CONTINUE TO USE ARGUMENTS BASED ON THE
BUOYANCY OF THE ECONOMY AND GUR RESERVES, IN SPITE OF THEIR
INVALIDITY AND IRRELEVANCE.
2. INCREASES IN LOCAL CAPITAL COSTS MAY, OF COURSE, HAVE SOME BEARING ON WHAT COULD BE NEGOTIATED AS INDEED I MADE CLEAR IN
LONDON. DETAILED INFORMATION ON THE PROJECTS AND COSTS INVOLVED WILL I HOPE BPE SUPPLIED. I WOULD POINT OUT AGAIN THAT WE HAVE
NEVER HAD ANY AUTHORITATIVE INFORMATION ON THE CAPITAL PROGRAMME
AND WHAT INFORMATION VE HAVE BEEN ABLE TO OBTAIN ON CAPITAL COSTS
WE HAVE HAD TO GLEAN LOCALLY.
3. I CANNOT OF COURSE MAKE, OR RAISE, ANY OFFER WITHOUT EX CO/
LEG CO APPROVAL.
4. IF THIS MATTER IS NOT SETTLED BEFORE THE END OF JANUARY
EITHER NO FIGURE FOR THE DEFENCE CONTRIBUTION CAN BE INCLUDED
IN THE DRAFT ESTIMATES OR PROBABLY THE SAVE FIGURES AS FOR THE
PREVIOUS PERIOD WILL HAVE TO BE PROVISIONALLY INCLUDED. FINAL
FIGURE WOULD THEN HAVE TO BE MADE PUBLIC SEPARATELY LATER WHICH
WOULD INVOLVE A SECOND PUBLIC FURCRE: FOR WE WILL NOT BE ADLE
TO AVOID ADVERSE COMMENT ANYWAY WHATEVER IS CR IS NOT INCLUDED
IN THE DRAFT ESTIMATES.
5. I AM BEGINNING TO WONDER WHEHTER I SHOULD NOT CONSULT
EX CO, AT LEAST, QUITE SCON NOW IN ORDER THAT I MAY BE ABLE TO CONVEY UNOFFICIAL MEMBERS REACTIONS BASED ON ACTUAL CONSULTATION INSTEAD OF GUESSWORK. BUT IF THIS IS DONE, IT IS NO GOOD MOD AND TREASURY THINKING THAT WHATEVER FIGURE IS COME TO WILL BE
OPEN TO SUBSTANTIAL VARIATION.
SIR P. TRENCH
FILES
HỒNG KÔNG D.
MR. WILFORD SIR L. MONSON
RIEVED IN
[RIOMTRY No. 51
SECRET
HIKK 10/9