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1

Classification

SECRET

OUT TELEGRAM (CONT)

Caveat

Precedence

PRIORITY

2 without involving Finance Committee.

33.

As a next step, Hatfield would like to talk informally t

Che will be visiting in early May) 4 those concerned in Hong Kong to see whether some way could be 5 found to meet MOD's needs without causing the kind of problems

6 mentioned in your tur. I encouraged him to send an emollient

7 telegram in response to your Telno 1185 as the best preparation

8 for such talks.

94.

I told Hatfield that, however one looked at it, the MOD

10 were seeking something from Hong Kong beyond the normal 65:35

cost-share arrangement, and that was likely to cause

11

12 difficulties for you. I hope that you will nonetheless ask your 13 people to discuss the situation with him with as open a mind as 14 they can muster: the MOD do have genuine problems.

15

16

HURD

17

18

19 YYYY

20 MAIN

21

HD/HKD

22 HD/DEFENCE DEPT

231

MR GILLMORE

24 MR MCLAREN

25

MR GOULDEN

26

27 NNNN

28

29

30

1/1

31

321

/

34

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Catchword:

YFS 7

Printed the UK CYP-MSO 4,388 C28197334 0500 27031

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