CONFIDENTIAL

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4.

I hope that you will be willing to look into this matter again in the light of my further explanation and after a study of the Hong Kong Government report. In the event that the Ministry of Defence still find themselves unable to accept that the cost of the fence should fall on their vote we agree with the suggestion in paragraph 4 of Curzon's letter to me of 24 February that the Treasury should be asked to arbitrate. However, we feel that (in the first place, at any rate) such arbitration should be as between the Ministry of Defence and the Hong Kong Government. For this reason we feel that the last two sentences in paragraph 2(a) of the draft enclosed with Curzon's letter should be omitted (they do not affect the position as between the Ministry of Defence and Hong Kong). We have also somewhat expanded the draft, and I enclose a copy of the revised version. If you are content with it, we should be happy for you to write accordingly to the Treasury. Alternatively we should be glad to do so ourselves in which event we should of course send you a copy of our letter.

Yours sincerely,

Lichael

معنا

K M Wilford

CONTINGIMTAT, covering EODEM

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