TNAG-0063-FCO40-99-Defence-extra-costs-arising-from-the-internal-security-situa-1968 — Page 90

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9

Flag "A"

Flag "B"

Mr. Hall

We must answer the letter at (6) if only to deny "X". Sir A. Galsworthy's remarks applied only to the fence.

2. I do not think you were present at the discussion on

this subject with Mr.Cowperthwaite. He handed us the papers at (7), explaining that the first sheet contained only items on which they feared charges might be raised: none have been

raised as yet. I cannot think that the Ministry of Defence

would raise a charge for reinforcing Hong Kong, i.e. the additional infantry battalion and the two flights of R.A.F. Regiment (the latter were sent there for training anyway).

3. I am very unhappy about the strength of Hong Kong's case on all this. They know, I think, that they have not a leg to stand on so far as the fence is concerned and that if

we do contribute it will be a political gesture. As for the

rest, the doctrine is altogether against us.

In the past

extra costs have been raised for internal security operations

in aid of the civil power. The reassessment of Hong Kong's

defence contribution was not in my view accompanied by any new

concept as to what that contribution covers. While we can

argue that to charge for treating the wounded police is bad public relations of the first order and may be able to make a strong case for regarding certain items (e.g. of frontier expenditure) as arising from the external threat (incursions by militant Red Guards are a different proposition from the influx of refugees), I do not think we can or should get involved in a head-on collision with the Ministry of Defence over charges that arise plainly from military assistance in

straight internal security operations. It is for these

reasons that the letter at this stage merely reserves our position (while conceding the fence) and asks for details

of the charges.

4.

As to the fence, I think we must now write to the Treasury (with the assistance of Finance and Aid Department) making as much as we can of the argument that the need for this arises from the abnormal external threat posed by

conditions in China and using this as an argument for sharing

the cost with Hong Kong. If you agree, we will prepare a

draft.

6.5. Carter

(W.S. Carter)

2.10.67.

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