TNAG-0348-FCO40-384-Costs-of-extra-services-provided-by-armed-forces-of-UK-in-Ho-1972 — Page 36

CONFIDENTIAL

(4) The Hong Kong Government secs no reason why the

change in policy reflected by its decision in exercise "Spring Clean" should be applied with retrospective effect to exercise "Highland Bonnet", The Foreign and Commonwealth Office support the Hong Kong Covernment on this issue also.

13. We really must reach a conclusion about these long out- standing claims, which are beginning to attract the attention of the Exchequer and Audit Department, and since the Foreign and Commonwealth Office and we are unable to reach agreement, we should be glad if you would adjudicate. We and the Foreign and Common- wealth Office (with whom the terms of this letter have been agreed} are of course ready to discuss the matter with you if you think this will help.

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I am copying this letter to Kiss Kelly, Hong Kong and Indian Ocean Department.

CONFIDIAL

COMEDENTIAL