SECRET
RECEIVED
REGISTRY No.52
22 NOV 1974
GR 100
LAST
REF.
176
CYPHER/CAT A
NEXT
REF.
NKK 10/9
FM F C O 2016102
SECRET
201
TO ROUTINE HONG KONG TELNO 1016 DATED 20 NOVEMBER
MY TELNO 980: DEFENCE REVIEW.
1974
1. WE HAVE NOW AGREED WITH THE MINISTRY OF DEFENCE THE FOLLOWING
AMENDMENT TO THE RECORD:
QUOTE
5. IN CONCLUSION THE HONG KONG TEAM REFERRED TO THE GOVERNOR'S VIEW, EXPRESSED IN PARAGRAPH 3 OF HIS TELEGRAM 1037 OF 18 OCTOBER, THAT A FIGURE OF £31M., THOUGH GETTING NEARER WHAT MIGHT BE VIABLE IN HONG KONG AS A TOTAL, WAS STILL NOT VIABLE ON A COST-APPORTIONMENT OF 75/25. THEY SAID IT FOLLOWED FROM THIS ASSESSMENT THAT IF, AS NOW APPEARED CERTAIN, THE COST WAS TO RISE ABOVE £31M., THEN THE INCREASED COST TO HONG KONG WOULD BE WELL OUTSIDE HONG KONG'S FINANCIAL LIMITS ON THE SAME COST-APPORTIONMENT ASSUMPTIONS.
UNQUOTE
CALLAGHAN
FILES HD/HK10D
HD/DEFENCE D
PS PS/PUS
SIR D WATSON SIR G ARTHUR
MR THOMSON MR WILFORD MR MALE
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COPIES TO
MR HOCKADAY MOD ·
MR BRYARS AUS(GS) MOD
CDR PEROWNE D OF DP(C) MOD MR HFT SMITH CABINET OFFICE