SECRET
The way out of these immediate difficulties is to defer the positioning of the aircraft in the Colony until 1971 by which time the new defence contribution will hẹve been negotiated - and this is the initial position we have taken up with the Ministry of Defence in our letter of 27 May (Annex D). But if the MOD produse compelling arguments against deferment or the Governor himself feels that on balance deferment might be undesirable, then we must address ourselves immediately to the tacties of a separate negotia-
tion on aircraft costs,
5. It is suggested that discussions with the Governor should
concentrate on :-
(a) The merits of deferment (a preliminary MOD reaction to
this may become available before the discussions).
(b) The tactics of a separate negotiation on sircraft coats: suggestions for opening and fall-back positions and argumentation are contained in paragræ ha 9-10 of Annex A.
Hong Kong Departmant 28 May, 1969
SECRET
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