(c)
He was not expecting the unit to be positioned in Hong Kong before 1971 and during the currency of the existing defence contribution agreement. To ask for additional funds
specifically for the unit in the context of the current agreement would make his task "almost hopeless" and would
prejudice the negotiations for the post-1971 defence contribution. Somehow their cost to Hong Kong, although separately negotiated, must be "buried" in the new post- 1971 agreement; He suggests (paragraph 7(c)) that it might be possible to pick up and compensate for the cost of
operating the unit in 1970-71 when the existing agreement is re-negotiated.
(a) Unless some way can be found of providing the aircraft free
for the year 1970-71 (in the first instance) he fears Hong
Kong may have to forego them altogether.
He wants to discuss these issues during the Minister's forthcoming
visit to Hong Kong.
4. In considering what course to take with the Ministry of Defence,
the following factors must be taken into account :-
(A)
Ministerial Decisions on Costs
It is, of course, the Ministry of Defence's position (and not merely an expression of COS views) that these costs must not fall on Defence votes, as perhaps my letter should have brought out more clearly. The Ministry of Defence's stand is partly based on the COS
view that there is no military case for air cover in Hong Kong and that
It is HWBlog the case rests on political and psychological grounds alone. Flag G also based on the general thesis advanced by MOD in OPD (68)32, dealing √33
J
with the post-1971 garrison in Hong Kong, that "the costs of that part of the garrison not directly attributable to our external defence responsibilities, with the appropriate support, should be reimbursed to Defence votes" with the implication that "costs" in this context
means full budgetary costs. From what we know of the Defence Secretary's present thinking, it is unlikely that he will be shifted from that position except by Cabinet decision. He did not get a
/decision
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