TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 170

2DM 415/01

D80 1112/30

CONFIDENTIAL

RJ Smith Esq

Department of the Environment

Lambeth Bridge House

London 8 E 1

555

141

23 August 1971

LAST

REF.

135

NEXI

REF.

(02)

DEFENCE AGREEMENT - TONG KONG

Thank you for your letter of 18 August. 20 August.

I have also seen Thorp's of

2 I agree that, given that we are now well in 1971/72, it is unrealistic to attempt to hold up Part 1 and smaller works services pending the reaching of a new agreement on the Hong Kong defence contribution.

3

Thus I am prepared to accept your recommendations provided that the Foreign and Commonwealth office do not consider that, by acting in this way, we shall harm ourselves tactically in the negotiations for the new agreement,

4 If the FCO see no objection to going ahead, I am not quite clear how you would then proceed. Would you intend to deal simply with the PWD, or should the Governor be brought into the picture?

5

As Thorp points out, if DOE now incur significant expenditure, it will be essential to ensure that in a new agreement the PWD is prepared to take provision in 1971/72 to reimburse HMG with cash as well as carrying out works services in kind after the date of signing of such an agreement.

6

I am copying this to Gaminara, Thorp and Winnard,

некора

TJ BRACK