TNAG-0307-FCO40-343-Costs-of-extra-services-provided-by-armed-forces-of-UK-in-Ho-1971 — Page 31

Foreign and Commonwealth · Fice London SW1

Telephone 01-

RECEIVED IN

IIVES,

16 NOV 1971

XFR968

with ly

P Gordon Esq

HM Treasury

Great George Street

London SW1

Your reference

Our reference HWD 10/1

Date 15 November 1971

BERMUDA:

1.

REFUND OF EXTRA COSTS FOR TROOPS

Further to our telephone conversation this morning, I am enclosing herewith a copy of the brief which has been prepared for the meeting that our Minister of State will have on Wednesday with a bermuda Government delegation. This delegation wishes to discuss, among other things, the question of our claims for the extra costs in sending troops to Bermuda in 1968 and 1969. I think you will find the brief self-explanatory.

2. It is quite clear, from what we have already heard, that the Bermuda Government delegation will strongly resist our claims for the 1969 extra costs on the grounds that there had been an understanding that the protection offered by HMG was in return for the Bermuda Government withdrawing its proposal to ban the conference. We expect that the Bermuda Government will show great reluctance to accept these costs, and may, indeed, refuse altogether to meet any of the costs of the 1969 operation. In paragraph 3 of the brief the Minister of State is advised that if the Bermuda Government refuses to pay these outstanding accounts straight away he should press for payment by instalments over the next 5 years and, for presentational reasons in Bermuda, these instalments could be a supplement to the annual Imperial Defence Contribution. Without some form of concession being made on our part it is foreseeable that the Bermudans will dig their toes in and refuse to pay altogether. In these circumstances I should be grateful if you would concur in the Minister making this concession of payment by instalments. 3. If the Bermuda delegation refuse to accept the 1969 costs then it will be necessary for the position to be explored further with you; this point is made in paragraph 9 of the brief.

CONFIDENTIAL