CONFIDENTIAL
3.
(4)
border area, (Incidentally, we have recently been informed by the Hong Kong Government that the latest policy statement on the maintenance of border works provides that the military is "responsible for all defence works and for all accommodation and tracks they have built and not formally handed over to the P.W.D. for maintenance" The policy statement of March 1968, has therefore been modified.)
The decision under (3) above represented a change in policy which the military authorities consider should be backdated to include works carried out under "Highland Bonnet".
I do not think that the above statement of the position in any way contradicts the facts as given by the Command Secretary and we realise that there is room for argument on both sides. But in the absence of any agreement by the Hong Kong Government, at the time of the change in policy referred to in (3) above, that this change should have retrospective effect, we find it difficult to produce arguments which would both justify our bringing pressure to bear on the Hong Kong Government and which would persuade that Government (and more particularly the unofficial element in it) to accept liability for the works carried out in connection with "Highland Bonnet"
4. In the circumstances I hope you will feel able to agree that the expenditure in question should be accepted against defence votes.
5. We are taking up with Hong Kong the small item of £118 in respect of additional allowances for Hong Kong Other Ranks.
2.
CONFIDENTIAL
A W Gaminara
Hong Kong Department