Draft on 14kα10/0
CYPHER/CAT A
SECRET
ROUTINE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 382
SECRET
(24)
TO HONG KONG
27
9 JUNE 1969 (HONG KONG)
YOUR TELEGRAM NO. 447: FOLLOWING FROM CARTER: FIGHTER AIRCRAFT.
MINISTRY OF DEFENCE HAVE AGREED TO LET MATTER REST UNTIL AFTER
DEFENCE SECRETARY'S VISIT TO HONG KONG AND THEIR BRIEF FOR HIM
WILL TAKE INTO ACCOUNT VIEWS EXPRESSED BY LORD SHEPHERD IN YOUR
PARAGRAPH TWO.
2. 1N MORETON'S ABSENCE, QUESTION OF HOW CAPITAL AND RECURRENT
COSTS ARE TO BE MET HAS NOT BEEN FURTHER PURSUED BUT WE UNDERSTAND
THAT FINANCIAL ADVISERS IN MINISTRY OF DEFENCE TAKE THE VIEW QUITE
CATEGORICALLY THAT PROPOSED CAPITAL CHARGE FOR AIRCRAFT MUST BE
£367,908 AND NOT REPEAT NOT £140,000. THIS IS APPARENTLY BECAUSE
PAYMENTS TO THE UNITED STATES GOVERNMENT (SEE PARAGRAPH SIX OF MY LETTER OF 18 FEBRUARY) IN FACT GO INTO A SPECIAL FUND WHICH
IS ULTIMATELY USED IN AID OF OUR DEFENCE BUDGET: WE HAVE NO
FURTHER INFORMATION ABOUT THIS ASPECT.
3. MINISTRY OF DEFENCE HAVE BEEN INFORMED OF YOUR REQUEST THAT
MATTER OF HELICOPTERS SHOULD ALSO BE DISCUSSED DURING DEFENCE
SECRETARY'S VISIT.
4. GRATEFUL TO RECEIVE BY TELEGRAM INFORMATION OF ANY DEVELOPMENTS WHICH MAY OCCUR AS A RESULT OF YOUR DISCUSSIONS WITH DEFENCE
SECRETARY.
STEWART
DEPARTMENTAL DISTRIBUTION:
HONG KONG DEPT.
FAR EASTERN DEPT.
DEF.T. & S.D.
DEF.POL.D.
FIN.POL.& A.D.
1AST
24
F
DDDDD
SECRET
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