Page 194

effect this would limit it to W.D.Lot No.5 as mentioned in paragraph 3 (a) and (b) of your savingram No.2187 of 1957. The Admiralty is, of course, not involved in the present garrison questions and, if all its dockyard land could be covered by one negotiation with your Government and independently of the War Office land the opening of such negotiations would be facilitated and with that the prepara- tions for founding the small ships' base, a move very much in the common interest. We think you should know however that the Admiralty place a value on their land of something of the same order as the War Department figure and, if they vacate it, would wish to recover that value in one way or another.

5.

Grateful for your comments and any further observations so that early report can be made to Ministers.

Ends.

Distribution:-

Treasury

T.S.Automatic Mr. Carstairs

Mr. Campbell

Mr. Fairclough

Mr. Wallace

Mr. Ashton

Ministry of Defence Admiralty

War Office

Mr. I. de L. Radice Mr. D. E. Locke Mr. P. D. Nairne Mr. H. W. Browne

Page 194

Page 194

PRIORITY MARKINGS

Emergendage 195 of 183

Immediate Priority

Reply urgently required

Nil

Redhafr..

Homo 1/4

File No... DEF 75/51/02

*TELEGRAM

DRAFT

*SAVINGRAM

* Delete whichever is inapplicable. If necessary, "Priority" may be inserted before "Savingram."

Addressed

Nuonty

Mr..

Mr..

Mr.

Wallace 15. Melville 15.

(Insert appropriate priority marking)

Ger- Hong Kong.

No.

335

SECURITY, ETC., MARKINGS

Page Fetof 283

Secret

Confidential

Restricted Unclassified Personal Guard

225

Repeated

(Insert appropriate priority marking)

No.

Mr...

Sir......

Permt. U.S. of S.

Parly. U.S. of S.

Minister of State

Secretary of State

ENCLOSURES

(Savingrams only)

MEDIUM

En--clai Goder

Cypherplex

(Delete whichever is inapplicable)

SAVINGRAMS ONLY

Your reference

FOR USE IN TELEGRAPH BRANCH

Despatched

On....

At

Shuplex- 15.4.1958.

1500.

Hrs.

Code

Cypher OTP Simplex En clair

File References

Top Secret.

(Insert appropriate security, etc., marking)

Following personal from Melville. Begin.

You bels, nos. 262, 270, and 322.

SPECIAL INSTRUCTIONS

(206)

TS. Automatic

(217)

(224)

Curtain

Malmille

Campbell

Ashton

DISTRIBUTION AND

FURTHER ACTION

I. de L. Radice

(Tsy)

DE. Locke

(frem. Def.) P.D. Naigne (Adatty) HW Browne (wo)

2

-pcrpersch.

Internal as for

hols under ref

PRINT

5

Page 195m

Delete whichever NO PRINTING is inapplicable)

official

talks.

Garison.

S. of S. was

payment of

most

for your fresh thoughts

grateful for the

The 1957/58 defence

Cantisbution, and

for your

willingness to make this dedicate

approach to

h

Finance Committee

asked us to discues

# proposals in para.

A

the

262efore

4 of your

het.

262 have been dessin

before taking them to colleagues.

to with them officials bem mailed Dick it

bot bevet (wed the allowing

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Adyakshave

your beecations before

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