crux of this matter lies in the item of the frontier
fence.
The paper flagged E sets out the
circumstances in which the fence came to be built
and the paper flagged K makes it clear that we
are in no position to argue the toss with the Ministry
of Defence over this item.
4. As regards the last sentence of paragraph 10 of
the attached draft, Mr Haddon-Cave recently informed
me that the reason why the Unofficial Members of the
Executive and Legislative Councils eventually agreed
to make a defence contribution of £8 million was
because they did not wish to embarrass Sir David Trench
on the eve of his retirement.
5. The draft has been cleared with Finance Department
and Defence Department and I now seek approval for
its issue.
At no stage
vhave we told
Hong Kong of
our acknowledgment to the Minciting of Defence that the cost of the fence,
hart of
or amy
it
was not a proper Charge.
to defence ivotão,
NOTHING TO BE WRITTEN IN THIS MARGIN