CONFIDENTIAL
12.
(3)
for a joint police/military presence
on the frontier than the purely military
situation might dictate. It was no
longer practicable to attempt to
distinguish between a threat to internal
security and a threat of armed aggression
across the border.
Accordingly, in
March 1968, the Hong Kong Government
took the policy decision referred to in
paragraph 9 above.
It was in accordance with that decision
that exercise "Spring Clean" was
undertaken, at the request and on the
initiative of the Hong Kong Government,
which agreed to meet the costs involved.
(4) The Hong Kong Government sees no reason
why the change in policy reflected by
its decision in exercise "Spring Clean"
should be applied with retrospective
effect to exercise "Highland Bonnet".
The Foreign and Commonwealth Office
support the Hong Kong Government on
this issue also.
We really must reach a conclusion about
these long-outstanding claims which are beginning to
attract the attention of the Exchequer and Audit Department
and since we and the Hong Kong Government have
been unable to resolve the matter, we have agreed
with the Foreign and Commonwealth Office on the
terms of this letter to you, with the request
that you will adjudicate as between ourselves
7.
CONFIDENTIAL
/and the