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threatened and United Kingdon forces were there to

meet the threat, the cost of measure which would

counter it should fall, in part at least, on United

Kingdom Defence Wotes, This is however without

prejudice to the principle that the cost of internal

security operations and local defence is the financial

responsibility, and should be the first charge on the

Similarly, since it was also

of a

budget, of a territory.

then felt that illegal immigration was a threat, the

cost of a measure which would counter this should fall

on the Hong Kong Government.

8.

1

In all the circumstances we think that it would

not be unreasonable to share the total cost equally

between the two Governments-with- the United Kingdom

share resting on MOD

OD Votes We suggest that the total

Votes,

cost of the fence should be divided into two equal

Since the total cost was £173,340 for materials

parts.

and some £69,000 for labour and compensation this would

in frutt

If the disputed sum mean that the MOD should bear £121,170 and 2-laim-

should be presented to the Hong Kong Government for (ie £121,170 less the £69,000 you have already spent),

£52,170)

9.

With regard to the "Highland Bonnet" claim, in

our view the arguments on each side are pretty evenly

1

balanced although in all honesty we do feel that to

draw a distinction between "Highland Bonnet" and "Spring Clean" rather savours of hair splitting. However the hope of clearing the ways far a

to

JA

Lee MOD have new agreed to cease to pursue bis sal

bo sakamın are prepar

with draw his

his daim in the hope that

satisfactory solution

10.

the Snake Fence dispute?

I realize you will have some difficulty

persuading your Finance Committee to vote the funds

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