TNAG-0063-FCO40-99-Defence-extra-costs-arising-from-the-internal-security-situa-1968 — Page 14

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SECRET

16 July, 1968

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You wrote to Artnur Galsworthy on 1 September, 1967 about the possibility of the raising of charges by H.M. Government against the Hong Kong Government in respect of costs of various facilities, personnel, etc., which were provided by the Services in connection with last year's disturbances in the Colony. You had discussions on the matter during your visit here in September and the subject was again raised whilst the Minister was in Hong Kong in October.

I am now attaching copies of two letters (with their enclosures) which we received from the Ministry of Defence some time ago and which give details about the charges which the Army Department are seeking to raise with you. The enclosure to the letter of 29 February has been brought up-to-date by the inclusion of three additional items subsequently notified to us. The Ministry of Defence cannot guarantee that this is the final list of charges to be raised by the Army Department, but it includes everything that they know of to date; some of the items are, of course, continuing ones.

The Ministry of Defence have told us that the Navy Department have not incurred any identifiable extra costs in respect of shipping

The movements connected with the reinforcement of the garrison. Air Department have not yet presented their bill and all we know at the moment is that it is likely to be of the order of £25,000 in respect of air-trooping movements to date.

We should be grateful if you would now examine the items listed in the enclosures to this letter with a view to agreeing with the local military authorities which of the items you are willing to accept as a fair charge against the Hong Kong Government without further ado, We had a brief discussion a few days ago with the Deputy Command Secretary from Hong Kong who was over here for a few days. He is being instructed by the Ministry of Defence to seek discussions with the Hong Kong Government on his return with a view to

I securing local settlement of as many of the items as possible. think you will find him co-operative, particularly over such items as that of "medical treatment of police personnel" which you specifically mentioned in your letter. We shall, of course, need to be told in due course which items you feel unable to accept together with your

reasons.

Sir John Cowperthwaite, KBE., CMG., Financial Secretary,

Hong Kong.

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Shaft reply to R.019 for fairing

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17768.