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unit, with RAF manning, which, in round figures, envisaged capital
expenditure of £300,000 for the purchase of the aircraft and
recurrent annual expenditure of £335,000.
6. Difficulties arose over the provision of the necessary funds
to meet this expenditure. The Chiefs of Staff and the Ministry of
Defence maintained that no part of the costs should be accepted
against defence votes since there was no military case for establishing
a fighter unit in Hong Kong and that any argument for so doing must
therefore be based on political grounds.
7. On the other hand the Governor made it clear that any requirement
that Hong Kong should pay for the capital cost of the aircraft would
so affront public opinion in the Colony, and more particularly the
opinion of the unofficial members of his Executive and Legislative
Councils, that it would almost certainly lead to the abandonment of
the whole project. The Governor also saw serious difficulties in
meeting the recurrent costs of the scheme if this were to involve
any increase in Hong Kong's defence contribution during the currency
of the existing agreement between the Hong Kong Government and
Her Majesty's Government, which expires in 1971. In the words of
the Governor "unless the fighters can be provided wholly free in the
first instance and within the present contribution for the first
year, I am afraid we shall have to forego them. If this can be
done then there is some hope thereafter of "burying" them in the
new negotiations" (for the renewal of the defence contribution
agreement).
8. Lord Shepherd discussed the matter with the Governor when he
visited Hong Kong at the beginning of June. At the Minister's
request, the Ministry of Defence agreed to let the matter rest until
after the Defence Secretary had visited the Colony later that month.
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