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ABIT OF THE MINISTER OF STATE
(LOLD SHEPHEND)
TO HONG KONG. HAY/JUNE 1969
DERENCES FIGHTER AIRCRAFT
"
It will be recalled that in May, 1968 Ministers approved a "proposal to station Hunter aircraft in the Colony, subject to further examination of the possibility that these aircraft might be manned and serviced from local resources. Subseŋuent studies indicated that local resources could be used for servicing but that local manning would not produce significant economies and were undesirable on grounds of efficiency. Detailed proposals have been put forward by the Ministry of Defence, on the basis that no part of the cost should fall on Defence votes, and these have been the subject of an exchange of views with the Governor who wishes to discuss the matter during the Hinister's visit.
2. The background and issues involved are set out in the attached minute (Annex A) and in the correspondence with the Governor (Annexes B and C).
3. The crux of the matter is the proposal to station the aircraft
The Governor has stated in the Colony in 1970 rather than 1972. the political and tactical reasons why he could not attempt toœtain a Hong Kong contribution to the cost in 1970/71 (although he does suggest that it might be possible to take retrospective account of a Hong Kong contribution in respect of that period when negotiating the level of the post-1971 defence contribution). We for our part see no prospect of satisfactorily resolving, in Hong Kong'a beat interests, the question of the Hong Kong contribution for 1970/71 and thereafter (short of an undertaking by Hong Kong to meet the entire capital and running costs) except in the context of a docision on where the costs should be borne of the enhanced post-1971 garrison as a whole (paragraph 5 of Annex A).
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