ILMEDIATE
CYPHER CAT/A
276 850
FM HONG KONG 8587372
CONFIDENTIAL
DESKEY 050830Z
CONFIDENTIAL
RECEIVED IN
REGISTRY
• 5DEC1375
ARR. 10/1
51
TO IMMEDIATE F C O TELEGRAM NO 1229 OF 5 DECEMBER.
FOR O'KEEFFE.
PLEASE PASS FOLLOWING TO DAVIES FROM WIGGHAM.
•
+33
TOP COPY
· DEFENCE COSTS AGREEMENT: STATEMENT OF WORKS PROCEDURES.
F C O TELEGRAM NO 932 OF 3 DECEMBER.
419
1. A DRAFT OF THE STATEMENT OF WORKS PROCEDURES WAS THRASHED OUT
IN A JOINT SESSION WITH PSA AND HQBF AND WAS SENT BY SIGNAL TO
MOD LAST NIGHT TO BE COPIED TO YOU VIA F C O.
2. I HAVE THE FOLLOWING PERSONAL COMMENTS :
(A) THE DRAFT IS PROBABLY THE BEST SO MANY COOKS COULD MANAGE
IN THE LIMITED TIME AVAILABLE. IT WILL ALMOST CERTAINLY NEED FURTHER WORK, EITHER IN LONDON, OR SUBSEQUENTLY IN
HONG KONG, OR BOTH.
(B) THE FACT THAT WE HAVE PRODUCED A DRAFT DOES (FOLLOWING WORD UNDERLINED) NOT MEAN THAT WE HAVE SOLVED THE ARITHMETIC. WE HAD NO TIME TO CONSIDER PROGRAMMES OR POSSIBLE ALLOCATIONS OR EXPENDITURE PATTERNS AND THIS ASPECT REMAINS AS INTRACTABLE AS WHEN YOU LEFT (WITH THE ADDED DIFFICULTY NOW OF THE ''SPREAD AS NEAR AS POSSIBLE TO THE ANNUAL AVERAGE' STIPULATION). (C) I AM NOT SATISFIED THAT WE ARE FULLY AGREED HERE ON THE EXACT
DETAIL OF THE ADMINISTRATIVE MACHINERY. BUT (UNLESS YOU INSIST ON SPELLING THIS OUT FURTHER IN LONDON) THE PROVISIONS AS DRAFTED ALLOW US TO AGREE PRECISE MEMBERSHIP, TERMS OF REFERENCE AND EXTENT OF DELEGATION FROM ONE COMMITTEE TO THE OTHER ON YOUR RETURN.
/3. THE REFERENCE
CONFIDENTIAL