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a substantial part of the cost but before doing so wished
to be reassured that there was no possibility of persuading
local interests to bear a greater proportion of the
cost.
The Governor has said that Hong Kong Government's
interest would not justify more than 25% but that local
shipping interests would be asked what proportion of the
costs they would be prepared to bear. We have not yet heard
the results of his approach and when we do J.I.C. will
consider how the balance ia to be met from United Kindom
sources.
The cost of running the Unit on present lines is about
$20,000 per month. The Hong Kong Government originally
thought that this figure might be reduced to $15,000 a
month with certain economies. They have now revised this
upwards to $17,100 (about £1200).
As a result of the "Fortunate Wind" incident, the
Governor has said that the basis of operation of the
S.I.U. is being reviewed to see whether modifications
are needed to protect our informants. This implies that the S.I.U. is being kept going until the financial
wrangle is sorted out.
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