CONFIDENTIAL

4.

X1) A sum of £173,340 for the cost of

materials (including the cost of their

transport from Singapore to Hong Kong)

barbed wire)

for the erection of a bedor fence within Hong Kong territory parallel to, but along the Hong Kong/China frontier and

a little way south of the actual border

line.

(2) The sum of £20,691 being the cost of

stores provided for additional works

services on the border under a military

operation known as "Highland Bønnet",

BORDER FENCE

The circumstances in which this fence came to be

built and the purpose that it was intended to

serve are described in Hong Kong/telegram No 1320

of 29 August 1967 (copy attached).

The Ministry

of Defence made it clear to the Commonwealth Office

in 1967 that they would expect defence votes to

be reimbursed for any expenditure incurred by

them in connection with the project. And in

October 1967, the Commonwealth office acknowledged

that such expenditure was not a proper charge on

defence votes since the fence was in the nature

"

of an immigration/control measure (see attached

copy of letter dated 4 October 1967 from Hall to Cass

This vieny CASIS).

is held to be incorrect by those dealing

5. It is clear from the last sentence of Hong

Kong telegram No 1320 that the Hong Kong Government

have always maintained that the cost of the fence

is not a charge which they should be expected to

meet In support of the Hong Kong case, the

IN

E

C

(in the FCO) with the matter, some

directly

of whom were in withred in Hongking at the time, for the

readers

below!

set out

CONFIDENTIAL

/Foreign

NOTHING TO BE WRITTEN IN THIS MARGIN

(

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