4.
CONFIDENTIAL
(1) A sum of £173,340 for the cost of materials
(including the cost of their transport from
Singapore to Hong Kong) for the erection of
a barbed wire fence within Hong Kong
territory parallel to, but a little way
south of the actual border line.
(2) The sum of £20,691 being the cost of stores
provided for additional works services on
the border under a military operation
known as "Highland Bonnet".
BORDER FENCE
The circumstances in which this fence came to be
built and the purpose that it was intended to serve
are described in Hong Kong telegram No 1320 of 29
August 1967 (copy attached). The Ministry of
Defence made it clear to the Commonwealth Office in
1967 that they would expect defence votes to be
reimbursed for any expenditure incurred by them in
connection with the project. And in October 1967,
the Commonwealth Office acknowledged that such
expenditure was not a proper charge on defence votes
since the fence was in the nature of an "immigration
control measure" (see attached copy of letter dated
4 October 1967 from Hall to Cass). This view is held
to be incorrect by those dealing with the matter in
the FCO, some of whom were directly involved in Hong
Kong at the time, for the reasons set out below.
5. It is clear from the last sentence of Hong
Kong telegram No 1320 that the Hong Kong Government
have always maintained that the cost of the fence
is not a charge which they should be expected to
meet. In support of the Hong Kong case, the
HWB10/16 3
CONFIDENTIAL
/Foreign
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