CO129-623-9 Estimates of Expenditure- includes a report for the year ending March 1952 1-2-1951 - 30-11-1951 — Page 191

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

5.

251

94003/10/51

Typex

TO HONG KONG ( Sir A. Grantham)

Sent 28th February, 1951

13.45 hrs.

IMMEDIATE

No. 299 Secret

Your telegram No. 225.

Following from Sidebothar.

Begins.

Your paragraph 1. Agreed. We assume it will not cause embarrassment if additional sum has to be provided later by supplementary vo e.

Your paragraph 2. Lester does not suggest any particular amount. After discussing possible serious effect of Far East situation on Colony's economy we express hope that contribution would not be less than last year's as Service Departments estimate their additional expenditure for Hong Kong on reinforcement etc., to be about £5 million, and in addition'since last year His Majesty's Government have had to undertake heavier defence commitments all over the world.

Contribution to take same form as before i.e. cash payment plus works or services, e.g., resumption of land for roads and settlement of Kai Tak joint user arrangements to be taken into account. Ends.

Copies sent to:-

Treasury

Ministry of Defence

Air Ministry

Admiralty

War Office

-

Mr. Hudspith

Mr. Lawrence-Wilson

Mr. H. Harvey

Mr. Pugh

Mr. A.D. Harvey