SE CRET
3. YOUR PARA 4. THIS IS CORRECT ACCORDING TO MOD FIGURES. THE PAPER WILL UNDERLINE THIS FACT, AND BOTH WE AND MOD WILL BE WORKING FOR THE RECOMMENDATION OF OPTION LA TO MINISTERS, BUT WE MAY HAVE TO ACCEPT THAT FURTHER ECONOMIES WILL BE NECESSARY
TO BRING THE TOTAL COST NEARER TO £34M 1.E. DOUBLE THE £17H
CONTRIBUTION FROM THE HONG KONG GOVERNMENT, WE ARE ASSUMING
THAT THE LATTER WOULD BE AT 1974 PRICES BUT THAT IT WOULD GROW
AS NECESSARY TO TAKE ACCOUNT OF RISING COSTS.
CALLAGHAN
FILES
HD DEFENCE D
HD HKIOD
PS/PUS
SIR G ARTHUR
SIR D WATSON
MR MALE
2
SECRET
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