Registry

No.

SECURITY CLASSIFICATION

CONFIDENTIAL

DRAFT

LETTER

To:-

Top Secret.

Secret.

Confidential.

TJ Brack Esq

"Restricted.

HM Treasury

Unclassified.

PRIVACY MARKING

..In Confidence

Type 1 +

From

A W Gaminara

Telephone No, & Ext,

Department

Hong Kong

CC

G J Gammon Esq F1(Air)

MOD

Finance Dept.

Behind (To

1.

Now that the dust is settling on the issue

of the Hong Kong defence contribution there is

one other matter which we in the FCO have been

discussing with the Ministry of Defence for a

considerable time and which I am bringing to your

notice in terms of this letter and the enclosed

memorandum.

The matter relates to certain items

of expenditure incurred against defence votes

during the 1967 disturbances in Hong Kong in the

circumstances described in the memorandum.

2.

As regards the first item (the border fence)

since we

nce

d already expressed the view that the

-expenditure on the fence is not a proper chargeTM

to defence veteer the question for decision is

Defence

whether those votes should be reimbursed from an increase on

some other vote (eg the FCO vote) or whether the

Hong Kong Government should be called upon to

refund the amount involved (£173,340).

3. The second item relates to expenditure of

£20,691 on stores for certain border posts in

Hong Kong. It is at the suggestion of the

Ministry of Defence that we are referring this

item to you since there is a difference of opinion

between us as to where the ultimate responsibility

(145181) Dd. 737490 750M 1/71_Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

/for this

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