to
In view of the telegram at (248), pha bave spoken the Treasury (Mr. Phelps), the Ministry of Defence (Mr. Locke) and the War Office (Mr. Browne) saying that we are now absolutely clear on this subject, and that all we are awaiting is a reply from the Chancellor of the Exchequer to the note which we sent him at (240) The Treasury say that the Chancellor would not reply to our note until the other Departments had replied, and it was for that reason that I spoke to the War Office and the Ministry of Defence. Both of these Departments have promised to expedite their comments. The War Office (DMO's Branch) are very anxious to have final clearance of this by the end of this week, so that the unit can be put in the process of moving, and if this is so it will be in Hong Kong by October 8th. Any further deferment will make things a bit difficult for them, but not, I gather, impossible. We must however work towards getting a decision by the end of this week.
2. I understand from Mr. Phelps at the Treasury that they are chiefly worried about the cost of accommodation for the unit, which apparently has been put at £100,000. I have not the previous papers by me at the moment, but I am almost certain that the Governor of Hong Kong and the C.B.F. Hong Kong put the cost at considerably lower than this, if it arose at all. Neither of the two other Departments seem disposed to raise this point, and I hope that we shall hear no more of it.
3. As I shall be away on the 29th and 30th I shall be grateful if Mr. Fairclough will keep on to the three Departments on this subject and try to get a quick reply.
4.
Mr. Melville to see.
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(A. Campbell) 28th May, 1958
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