TNAG-0182-FCO40-218-Defence-contributions-1969 — Page 31

NOTHING TO BE Written in this MARGIN

W(B)L 51-7406

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of course be the very considerable running

costs of the support provided by the United

Lme

Communications Kingdom base and the Gurkha L. of C. I also

attach at Annex B a forecast of expenditure

on capital works which again would be subject

to increase if the proportion of British

troops in the garrison increased.

(In connec-

tion with capital works I think I should also

say that the total cost we now expect to have

to meet for the new works within the present

agreement is £3.5M as against a total contri-

bution by Hong Kong of £2.4M.)

4. No provision for the costs of a Hunter

unit have been included in the statement pending

the outcome of the correspondence which rests

with your letter to Carter (TSX 1/57) of

15 September. But if the alternative of visits

by RAF aircraft on training detachments is

accepted as a solution to the problem of pro-

viding fighter cover for Hong Kong, then pro-

vision for the capital and recurrent costs of

such visits will need to be included in the

statement. We shall be writing to you

separately on this point.

tô

5. Coming now the question of the future

defence contribution, you explained to the

Defence Secretary the considerable difficulty

you had been faced with in 1966 because of the

notional division of the garrison between

internal security forces and external defence

forces. We can see your point and we share

your wish that the form of negotiations should

be designed to give you the greatest possible

assistance in presenting the case to unofficial

opinion in the Colony. But while we are recep-

tive to ideas about a new approach to this

/ problem

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