TNAG-0182-FCO40-218-Defence-contributions-1969 — Page 47

(HKK 10/9)

SECRET

Hong Kong Department,

45

44

1 August, 1969

You will have seen a copy of my letter (HKK 10/9) of 31 July to the Governor of Hong Kong about the post-1971 defence contribution. As agreed at the meeting on

31 July, I enclose the draft of a further letter to be sent by Sir Leslie Monson on his return from leave towards the end of this month.

It may be thought that at this stage we should put into the letter a general piece about H.M.G.'s policy on defence expenditure. I am doubtful about this, feeling that it might come more usefully and appropriately on the next occasion we address the Governor, having received his first proposals. If you or Philip Nicholls favour inclu- sion, however, I would be grateful for a draft paragraph for consideration.

I am not, of course, in a position to put figures of costs into the Memorandum to be attached to the draft letter and must ask you to complete these. I hope costs can be stated separately for the various items. Whether # support costs" can or should be included is a matter on which I should welcome your views. One final point on the Memorandum. It would, I feel sure, be helpful (and save queries) if in footnotes we were to state on what assumptions as regards (a) accompanied or unaccompanied tours (b) presence of Gurkhas - costs are based. And one request. Can we please talk of "local costs" rather than "foreign exchange costs" when corresponding with Hong Kong?

I am sending a copy of this letter with enclosure to Philip Nicholls (Treasury).

Naylor

3298 XT. 3257

Howrces to. 6782

P. Nailor, Esq.

47

Ministry of Defence,

Main Building,

Небо

Hollando,

Gwynn. MOD. 6614.

Mc Dave's

C

7189.

(W. S. Carter)

Whitehall,

London, S.W.1.

SECRET

Noted

21

ANG.

8.69

6.8.69.

Notées

Gen 5,9.69 "ANG

bu 28,8.649

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