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122
VISIT OF THE MINISTER OF STATE
(LORD SHEPHERD)
TO HONG KONG, MAY/JUNE 1969
.. The M
FIGHTER AIRCRAFT
It will be recalled that in May, 1968 Ministers approved a "proposal to station Hunter aircraft in the Colony, aubject to further examination of the possibility that thone aircraft might be manned and serviced from local resourceo." Subsequent studies indicated that local recources could be used for servicing but that local manning would not produce significant economies and werd 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 Minister'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 in the Colony in 1970 rather than 1971. The Governor has stated the political and tactical reasons why he could not attempt to obtain a Hong Kong contribution to the cost in 1970/71 (although he does Buggest 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 aee no prospect of antisfactorily resolving, in Hong Kong's best interesta, the question of the Hong Kong contribution for 1970/71 and thereafter (short of an undertaking by Hong Kong to meet the entiro capital and rumming costs) except in the context of a decision 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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