SECRET
Domestic Item No. 5
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DISCUSSIONS WITH STR DAVID FRENCH
GOVERNOR OF HONG KONG
NOVEMBER, 1969
Defence Matters
There are three matters noted under this head for
discussion with the Governor:
(a)
Defence contribution
(b) Fighter Aircraft
(c) Helicopters
on relevant file
Separate background notes are attached on each of
these items.
Defence Contribution:
2. Our discussions with the Governor will serve as a follow-up
to our letter to him of 9 October and will provide an opportunity of clarifying any points that he may wish to raise. It is unlikely that the Governor will have had an opportunity of formu- lating any concrete proposals and our discussions with him can only be exploratory. For example, it would be helpful if we could exchange ideas with him as to the basic approach to be adopted to this matter. Is it likely, for instance, that agreement could be reached on a formula for calculating a defence contribution which might be acceptable to both sides? Or would it be preferable as a first step to try and determine a figure which is likely to be the maximum negotiable in Hong Kong and try to match it to a suit-
able formula thereafter?
Fighter Aircraft
3.
We see no prospect whatever of obtaining additional funds from the U.K. Defence Budget or from other United Kingdom sources for meeting the costs of a permanent fighter presence in Hong Kong. At the same time the Governor has been quite categoric in saying that he could not obtain Hong Kong funds at any time for the capital cost of the aircraft required; or for the running costs
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