F

In other

LAN

Pierce's

Well

lekin

NOTHING TO BE Written IN THIS MARGIN

211 January

1974.

}

SECRET

PERSONAL

was to cope with a, possible influx of refugees. Wnds the Junce

Coslinked As-each, It was really in the nature of an anti-

illegal immigrant measure and indeed it is

described as such in paragraph 7 of Annex B to the

Hong Kong paper dated 19 December 1970, entitled

"Implementation of the Land Border Policy"

(I am

grading this letter 'secret' merely because of

this reference.)

M&D

19 Dot De

The Ministry of Defence will

certainly not agree to accept any part of its cost

as a charge against their vote and we feel bound to

share their view on this. Indeed we do not consider

it to be a proper charge against HMG at all and we

do not expect to get much sympathy from the Treasury

when we broach the subject with them.

6.

At the same time, regardless of the above

comments and of what your own views may be on the sub-

ject, we are only too conscious of the likely reaction

of your Finance Committee to any application for

the necessary funds assuming that such an

application could not be avoided with which to

reimburse the military authorities. Coming so so on

after the conclusion of the recent negotiations

over the defence contribution, any such request

would, we assume, encounter the most jaundiced

reactions from the members of that Committee.

7. Work on Border Posts (Operation "Highland Bonnet")

The second of the outstanding items involves a

Suvises

sum of £20,691 spent by the military authorities

on stores required for refurbishing certain border

posts in connection with the 1967 disturbances.

tem

This matter has been the subject of correspondence

between Hong Kong and ourselves ending in

3.

SECRET & PERSONAL

/Jeaffreson's

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