3.
This brings me to the need for stationing the unit in Hong Kong from March 1970 instead of 1971. There appear to be two reasons given in the various studies on this matter for
the earlior date. At that time Hong Kong is to become an independent Command and the Hunter Squadron in the Far East
Air Force is to be disbanded. Neither of those seems to be a compelling reasons for the earlier date, although I can see that it would be administratively convenient and perhaps financially attractive. Ze presume that there would be no difficulty, if it was decided to postpone the establishment of the unit in Hong Kong for one year, for air cover to continue to be provided for Hong Kong either from Singapore or from
the UK.
When Ministers last year considered the Tefence Secretary's proposals on the shape and size of the poot-1971 garrison in Hong Kong (OPD(68)32), they decided, in the words of the Frime Minister's summing-up, that "consideration of where the costs of the garrison should be borne should be deferred but the Defence Secretary, in consultation with tho Chancellor of the Exchequer, should arrange for the best assessment possible to be made of the full cost to us of the Hong Kong commitment" (OPD(68)11th Mooting on 29 May 1968). In our view there is no prospect that agrooment could be roached, outside that cll-embracing exorcise, on where the coste of the fighter unit should be borno (if not by Hong Kong); and, as explained above, we think it would be unwise and almost certainly unprofitable to attempt to raise a charge against Hong Kong for costs arising prior to 1971.
5.
In all the circumstances therefore it is our viow
that, unless the costs of the unit can be borne on Fefence Votes for the period 1970/71, it would be better to defer the whole exercise for a year, positioning the aircraft in Hong Kong in April 1971.
6.
However, notwithstanding my proposal for deferment, you may be interested in the Governor's views on the question of Hong Kong's eventual responsibility for costs. Not unexpectedly the Governor has reacted strongly to any
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