FLASH
CYPHER/CAT A
RM HONG KONG 843455Z
SECRET ·
16
TOP COPY
SECRET
TO FLASH F.C.O. TELEGRAM NO. 75 OF 4 FEBRUARY 1971.
YOUR TELEGRAM NO. 181.
DEFENCE CONTRIBUTION.
LAST
REF.
NEXT
REF.
19
I REGRET MY TELEGRAM WAS NOT SUFFICIENTLY CLEAR. WE HAVE HAD-
THE FOLLOWING IN MIND:-
(1) WE WERE REALLY ONLY THINKING PRIMARILY IN TERMS OF CAPITAL UNDERLINE NEXT WORD BUILDING WORKS AND RECOGNIZE THAT THERE MIGHT BE TYPES OF CAPITAL WORKS UNDERTAKEN WHICH WOULD BE OF NO INTEREST TO US, AND TO WHICH WE WOULD NOT WISH TO LAY CLAIM: (2) ALTHOUGH WE WOULD HAVE CONTRIBUTED ONLY HALF THE COST OF THE WORKS INTERMS OF OUR FORMULA FOR DETERMINING THE WHOLE CONTRIBUTION THEIR VALUE WOULD HAVE MOST PROBABLY DEPRECIATED VERY SUBSTANTIALLY BY THE TIME THEY ACTUALLY REVERTED: IF THEY REVERTED AT ALL: (3) CONSIDERABLE DIFFICULTIES HAVE ARISEN UNDER OLD AGREEMENTS IN DISTINGUISHING THOSE CAPITAL WORKS TO WHICH WE HAVE A TITLE BY VIRTUE OF OUR CONTRIBUTION TO THEIR COST, AND WE WERE ANXIOUS TO SIMPLIFY THESE CONTENTIOUS PROBLEMS.
GURE
2. HOWEVER, AT YOUR RECONSIDERED FIGURE OF £3 MILLION CUR POINTS ARE INRACTICE LARGELY MET BECAUSE OF THE SMALL DIFFERENCE BETWEEN £15 MILLION AND THE COST OF THE WHOLE PROGRAMME. MOREOVER THE HIGHER FICURE WILL GIVE US MORE PRESENTATIONAL AMMUNITION.
3. IN SHORT, I CAN ACCEPT YOUR WORDING.
TRENCH
FILES
HONG KONG D
FED
SIR L MONSON MR WILFORD
NNNNN
REGISTRY M. R
никюра
COPIES TO:
MR R J SMITH, DO E, LAMBETH BRIDGE
MR J J BRACK MR A F THORPE,
SECRET
HOUSE.
TREASURY
RM 0257, MOD, MAIN BUILDING.