The way out of these immediate difficulties ie to defer tho positioning of the aircraft in the Colony until 1971 by which time the new defence contribution will have been negotiated
and thip
is the initial position we have taken up with the Ministry of Defence in our letter of 27 Bay (Annox D). But if the MOD produco compelling arguments against deferment or the Governor himself fools that on balance defermont might be undesirable, then we must address ourselves immediately to the tactics of a separate negotio-
tion on aircraft costs.
5. It is suggested that discuseions with the Governor should
concentrate on :-
(a) The merits of deferment (a preliminary MOD reaction to this may becoma available before the discussions)
(b) The tactics of a separate negotiation on aircraft costs: suggestions for opening and fall-back positions and argumentation are contained in paragrop hs 9-10 of Annox A.
Hong Kong Department 28 May, 1969
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