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21

Reference

Shensor

Mr Stephenson (Pinance Dept Room CH505)

HONG KONG SNAKE FENCE

1. You last saw these papers on 4 August minute at (17).

your

2. You may now like to see Mr Wilford's comment at (18) and the MOD reply to the Treasury at (21). We have now to consider our own letter of reply to the Treasury.

3. Mr Laird, who has seen these papers, would be grateful for your advice on this, particularly on the last sentence of paragraph 2 of the MOD letter to the Treasury. Mr Laird's feeling on this parti- cular point is that although of course we will do everything we can to persuade Hong Kong to pay their share, if the Hong Kong Government refuses to pay the only power we have would be to issue an instruction. Mr Laird would not advise issuing such an instruction to Hong Kong in view of all the other problems on the boil at this stage.

P.M. Kelly

P M Kelly (Miss) Hong Kong and

Indian Ocean Department

21 August 1972

Miss Kelly

1. Mr. tephenson is on leave. l 24 A

2. I think we can only say that we do intend to do all we can to persuade the Hong Kong Government to pay their share, soon, and that it would be premature at this stage to considder what should be done if they refuse.

f

•Platel

Plater(Miss)

Finance "epartment CH205

23 August 1972

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Please R to Me. Stephension

24 August

Prs. Kelly

2418

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DD 897152 154596 500M 2/72 GM 3643/2

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