SECRET
100105
MDHOAN 02
THAT THIS OPTION HAS NO ADVANTAGES OVER SIMPLY MEETING MOD'S COSTS: THE FINANCIAL ADVANTAGE TO HKG WOULD BE AT BEST MARGINAL, THERE WOULD BE CONSIDERABLE OPERATIONAL DIFFICULTIES, AND WE WOULD SERIOUSLY RISK REOPENING THE WHOLE DEBATE ON THE DCA.
5. WE SHALL REPORT FURTHER FOLLOWING ANOTHER MEETING WITH MOD TOMORROW MORNING. WE PROPOSE TO OBTAIN MORE DETAILS OF MOD'S LATEST PROPOSAL, TO POINT OUT THE DIFFICULTIES WHICH WE SEE WITH IT, BUT TO AGREE TO EXAMINE IT'URGENTLY AND IN MORE DETAIL IN HONG KONG, IF YOU HAVE ANY COMMENTS AT THIS STAGE GRATEFUL IF
THESE COULD REACH US DESKBY 3108OOZ.
HURD
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MAIN
15
MINIMAL
HKD
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DISTRIBUTION
15