Flags
and D
Mr. Moreton
Chat & HILK 107,
24
Mr. Gaminara's minute below sets out the background to the
exchange of letters with the Governor about the repositioning of fighter aircraft in Hong Kong.
2.
3.
The Ministry of Defence proposals are, briefly :
(i)
(ii)
a squadron of Hunters could be positioned in Hong Kong in March 1970 when one is due to be disbanded in the process
of withdrawal from Singapore;
it would be a condition of its establishment that Defence
votes would not have to bear any of the running costs relating to the unit from that date (estimated to be of the order of £335,000 p.a.) and that Hong Kong should pay in respect of the capital cost of the aircraft, an amount (£140,000) equivalent to the net credit that would have accrued to Defence votes had the aircraft been sold
elsewhere.
In his letter the Governor makes four main points :- (a) He asks whether we must accept the Chiefs of Staff
stipulation that no element of the costs of this unit should be borne on Defence Votes, querying in this context Hong Kong's assumed liability for both the entire operational costs and the element of capital expenditure in respect of the aircraft. He enquires whether the issue of costs could be reopened.
He
(b) Hong Kong opinion would be outraged if the Colony were asked to make a capital payment for the aircraft. implies that it would be impossible for him to pursue the matter at all on this basis, although he does not exclude the possibility (paragraph 7(b)) of meeting this charge indirectly, within the context of a new defence contribution agreement (see (c) below). To demand this capital payment would have very adverse effects on the position of the Forces in Hong Kong.
/ (c)
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