KUSEIVED IN.
REGISTRY No. 51
SP1571
SECRET
PRIORITY
CYPHER CAT/A
NXX
10/4
FM FCO 231810Z
SECRET
LAST
R6F
(153) 1 (156)
(HONG KONG)
TOP LUY
155
TO PRIORITY
NIE:
REF.
GOVERNOR HONG KONG TELEGRAM HUMBER 711 OF 23 SEPTEMBER
YOUR TELEGRAMS NOS 668 AND 694
DEFENCE CONTRIBUTION (SO)
(153)
1. THIS IS MOST ENCOURAGING NEWS AND WE CAN AGREE TO THE PROPOSED
CHANGE IN BASE DATE FROM APRIL 1970 TO APRIL 1971 FOR THE REVIEW
OF THE AGREEMENT IF THE COST OF CAPITAL WORKS WERE TO GO UP OR
DOWN BY 59 PER CENT OR MORE. CAPITAL WORKS WOULD OF COURSE BE CHARGED AGAINST POUNDS 17 MILLION AT ACTUAL COST AT TIME OF
PURCHASE OR CONSTRUCTION.
2. YOUR PROPOSAL REGARDING USE OF ORIGINAL AND CASTING VOTE ( LAST SENTENCE OF PARA 6 IN YOUR NO 660) PLACES US IN SOME DIFFICULTY, DECISION THAT YOUR RESERVED POWERS SHOULD NOT BE MENTIONED
( OUR NO 592 PARA 8) FOLLOWED ON A DECISION OF MINISTERS COLLECTIVELY AT MEETING REFERRED TO IN OUR NO 553 THAT AT THAT STAGE USE OF YOUR RESERVE POWERS WOULD NOT BE APPROPRIATE. WE HAVE THEREFORE TO SUBMIT TO MINISTERS ABOUT CHANGE IN YOUR
SEPTEMBER, INSTRUCTIONS AND CANNOT DO SO UNTIL MONDAY 27
WE ARE CONSIDERING RECOMMENDATION IN TWO PARTS (A) THAT IN INTERVAL BETWEEN NOW AND MEETING OF LEGISLATIVE COUNCIL ON 1 OCTOBER YOU SHOULD WATCH WHETHER OPPOSITION DOES GROW AND IF SO REPORT ON IT WITH YOUR RECOMMENDATION AS REGARDS USE OF ORIGINAL AMD CASTING VOTE (B) THAT IF NO SIGNIFICANT OPPOSITION APPEARS BEFORE COUNCIL MEETS BUT ARISES IN DEBATE SO THAT YOU ARE CALLED UPON TO CAST THESE VOTES, YOU SHOULD BE AUTHORISED TO DO SO, GRATEFUL EARLY COMMENTS ON THIS SUGGESTION.
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SIR S CRAMFORD
SIR L MONSON
SIR S TOMLINSON MR D A SCOTT
MR ROSE
MR WILFORD
04.
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COPIES TO
MR TJ BRACK TREASURY MR AT THORPE FI(AIR)MOD MR RJ SMITH DOELB
MR P D NAIRNE HOD
MR G GEDLING TREASURY
MR E STRETTON DOELB MR EH GWYNN MOD
HONG KONG GOVT OFFICE
PALL MALL
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