TNAG-0348-FCO40-384-Costs-of-extra-services-provided-by-armed-forces-of-UK-in-Ho-1972 — Page 46

CONFIDENTIAL

12.

(3)

for a joint police/military presence

on the frontier than the purely military

situation might dictate. It was no

longer practicable to attempt to

distinguish between a threat to internal

security and a threat of armed aggression

across the border.

Accordingly, in

March 1968, the Hong Kong Government

took the policy decision referred to in

paragraph 9 above.

It was in accordance with that decision

that exercise "Spring Clean" was

undertaken, at the request and on the

initiative of the Hong Kong Government,

which agreed to meet the costs involved.

(4) The Hong Kong Government sees 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 Government on

this issue also.

We really must reach a conclusion about

these long-outstanding claims which are beginning to

attract the attention of the Exchequer and Audit Department

and since we and the Hong Kong Government have

been unable to resolve the matter, we have agreed

with the Foreign and Commonwealth Office on the

terms of this letter to you, with the request

that you will adjudicate as between ourselves

7.

CONFIDENTIAL

/and the