Ta taird

Miss Kelly, HKIDD

1. I do not think that you need say anything more to the Treasury at this stage other than that you are grateful for their adjudication and, in the light of MOD's acceptance of it, are writing to Hong Kong accordingly.

2.There is, I fear, no escaping the fact that, if Hong Kong still refuse to pay up, the FCO will have to reimburse the MOD the £52,170 involved. But I hope that you will exercise all your considerable powers of persuasion on the Hong Kong Government to ensure that this eventuality does not arise. Meanwhile- bearing in mind how embarrassing the previous undertaking given in this context has turned out to be- let us avoid comment on the last sentence of paragraph 2 of the MOD letter as long as possible.

Stephen

(S.Stephenson)

Finance Department

29 August 1972.

Mr Laird

In view of Mr Wilford's comment at (18), he may like to raise this matter with the Governor on a personal basis, before we send a letter to Hong Kong.

P.M. Kelly

P. M. Kelly

30th August 1972

Пийкри

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drop

6the Treamy pl.

Notes

B.V. El in Kelly 18/9..

T

Could you fecars draft

the frinicial Secrating. I umbestavil that there is an earlier draft on file

which could be used as a braais

Trasmy decrin Secifically, buk

промена

pust marction the

the

should present the

so so thamy as a whitchall view "after the fudert consideration". The letter can go from Mo Lame (or me'yle is away).

449

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