From: A F THORP OBE, Head of Fl(Air)

MINISTRY OF DEFENCE

Main Building Whitehall London SW1A 2HB

Telephone 01-930 7022 ext 7189

RECEIVED IN REGISTRY No. 51

2 8 MAY 1974

lakk 10/7

(24)

R B Crowson Esq

Hong Kong and Indian Ocean

Department

Foreign and Commonwealth Office London SW1

Your reference

Our reference

Head of Fl(Air)/217

Date

21 May 1974

Космо вним

You asked me for the Ministry of Defence reaction to telegram 531 of 14 May from the Governor of Hong Kong regarding the additional contribution to defence costs in respect of increased building costs.

2. This is to confirm that the view of the Ministry of Defence is to settle for the proposal in paragraph 2(c) of the telegram ie. an additional contribution of HK 35M regardless of price movements between now and March 1976. We think this arrangement has the advantage of simplicity and removes the need for any further detailed discussion on the subject. To spell it out in simple terms, it means that the Hong Kong Government will pay towards all capital works services for the forces in Hong Kong up to a maximum of the amount shown in the Defence Agreement increased by HK 35M (about £2.85M).

3. I am copying this letter to Pat Aggleton (DOE/PSA), and Michael Scholar (Treasury).

Jun

encerely

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اسمارة سكنيه

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