CONFIDENTIAL (Covering Secret)
contribution of $35 million regardless of price movements will be mentioned to EXCO and Finance Committee. The U.K. representatives preferred this and on grounds of simplicity and the avoidance of uncertainty it may commend itself to Unofficials.
"much
3. The Ministry of Defence have been considering these proposals and have now told us that they agree to them. They would prefer the alternative shown in (C) above on the grounds that it is certain, simple and straightforward. The Department of the Environment (PSA) agree with this view. The Treasury's initial re-action was that Hong Kong might be pressed for more, but in the end they too have agreed to accept the proposal. 4. I think this arrangement is also satisfactory to us. The MOD have just told us that, according to a signal which they have received from the Commander, British Forces, Hong Kong would like to have our confirmation by 27 May so that the matter can be put to EXCO before the Governor leaves. I accordingly submit a draft telegram, which should go off if possible before the Holiday.
5. Defence Department agree.
23 May 1974
Cc:
Sir D Watson
Mr Thomson
Defence Department Finance Department
R.b. hors:
R B Crowson
Hong Kong and Indian Ocean Department
DCSL
23/5
CONFIDENTIAL (Covering Secret)