SECRET
which would increase markedly as time elapses. MOD expect that a Hong Kong refit would require assistance or UK personnel in planning and in work on the weapons/communications fit, at extra expense
2. Your Para 2. We are not clear whether this implies a preference for refit cost to be kept outside the cost sharing agreement or, alternatively, to be kept within it but on an actuals rather than estimates basis. Former would not commend itself to us; latter would not raise any issues of principle but we suggest need not be decided on now..
CALLAGHAN
FILES
HEAD HKIOD
HEAD DEFENCE D
SIR D WATSON MR WILFORD
MR THOMSON
COPIES TO:
MR A JH WARD DS6
2
SECRET
MOD