GRS 670
ITRIEDIATE
CYPHER CAT A
FM F C 0 272042Z
SECRET.
SECRET
(193)
(HKK 10/1)
REF.
413
COPY
802
TO IMMEDIATE HONG KONG TELNO 913 OF 27 NOVEMBER.
YOUR TELNO 1187: DEFENCE COSTS.
MOD HAVE ASKED US TO PASS THE FOLLOWING FROM ANDREW FOR DAVIES. 1. YOUR PARAGRAPH 2. I CONFIRM THERE WILL BE A FINAL BREAKDOWN
AND FIGURES BY 1 APRIL 1976.
2. YOUR PARAGRAPHS 3, 4 AND 5. IT WAS HELPFUL TO HAVE THIS FULLER EXPOSITION OF YOUR VIEWS. I DO NOT BELIEVE THAT THERE IS IN FACT
A VERY GREAT DIFFERENCE BETWEEN US ON A REVIEW OF COSTS AND COMPLEMENTS AND ON LOA AND I AM HOPEFUL THAT WE CAN FIND FORMULAE WHICH WILL ENABLE US TO FINALISE THE AGREEMENT WITHIN THE PLANNED TIMESCALE. I HAVE SPOKEN TO THE GOVERNOR AND I UNDERSTAND THAT YOU AND COLLEAGUES ARE NOW PLANNING TO COME TO LONDON FOR TALKS ON 3 DECEMBER. I SUGGEST THESE COMMENCE AT 1430 ON 3 DECEMBER AND CONTINUE AS NECESSARY ON 4 DECEMBER, IN ORDER TO RESOLVE ALL POINTS OUTSTANDING BEFORE THE GOVERNOR'S MEETING WITH MR ROGERS, NOW PLANNED FOR 1823 ON 4 DECEMBER. IT WOULD BE AS WELL IF YOU COULD ALSO BE AVAILABLE ON 5 DECEMBER TO DISCUSS ANY POINTS OF
DETAIL WHICH MAY STILL BE OUTSTANDING.
3. YOUR PARAGRAPH 6. I AM SORRY FOR THE DELAY. I UNDERSTAND FCO
HAVE NOW TELEGRAPHED THE NOTE.
4. YOUR PARAGRAPH 7. WE HAVE BEEN LOOKING AT THE PROPOSALS IN YOUR
TELNO 1159 BUT IT IS DIFFICULT TO REACH CONCLUSIONS UNTIL WE HAVE SEEN WHAT AMENDMENTS YOU PROPOSE TO THE MOU PARAGRAPHS ON WORKS
SERVICES. SUBJECT TO THAT NO GREAT DIFFICULTY IS SEEN HERE ON YOUR PARAGRAPH 6, SUBJECT TO THE ADDITION TO YOUR DRAFT MOU PARAGRAPH 10(A) OF THE WORDS SUBJECT TO THE REPROVISION OF ESSENTIAL FACILITIES AT SUITABLE SITES BY THE DATE SPECIFIED** BETWEEN ''ANNEX'' AND ''AND''. WE ARE CONSIDERING THE ACCEPTABILITY OF THE
''NOTWITHSTANDING ANY AGREEMENT OR COMMITMENT TO THE CONTRARY** PROVISIONS. WE SHALL ALSO NEED TO CONSIDER THE REFERENCE TO DATES IN PARAGRAPH 10(B) WHEN ANNEX C IS AVAILABLE. WE HAVE NO OBJECTION TO THE PROPOSALS IN PARAGRAPHS 3 AND 7 OF YOUR TELNO 1159. WE NOTE THAT YOU APPARENTLY DO NOT (REPEAT NOT) CONSIDER IT ESSENTIAL
SECRET
/FOR