TNAG-0348-FCO40-384-Costs-of-extra-services-provided-by-armed-forces-of-UK-in-Ho-1972 — Page 23

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Reference HKK 10/9

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Mr Laird

HONG KONG SNAKE FENCE

1

You will be pleas d to know that we have now received the Treasury ruling on the dispute between MOD and ourselves (please see 16). The Treasury adjudication is a favoura le one from the FCO point of view please see Finance Department's comment at (17) and Mr Wilford's minute at (18).

2

I should be receiving this week a copy of MOD's letter to the Treasury accepting the adjudication, adding that if the Hong Kong Government refuses to pay their half share of snake fence costs, then the FCC will have to pay the Hong Kong half.

3 I suggest we should now ourselves write to the Treasury accepting the adjudication and informing them that we will take up with the Hong Kong Government the question of their payment for half the snake fence costs.

If you agree, I will draft a letter together with a draft letter to Hong Kong. Should this issue from Sir D Watson ?

D

P.M. Keely

P M Kelly (Miss)

15 August 1972

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