TNAG-0475-FCO40-540-Contributions-of-Hong-Kong-for-costs-on-maintaining-military-1974 — Page 53

NOTHING TO ZE WRITTEN IN THIS MARGIN

Registry

No. LKKIO

SECURITY CLASSIFICATION

Top Ext.

Seyrety

Confidential.

مهم است

DRAFT

To:-

LETTER

Sir Murray MacLehose KCMG,

Type 1 +

FROM

A C Stuart

Telephone No. Ext.

XMKIN.

KINDAMMIJU.

PRIVACY MARKING

لسله

In Confidence

cuprès

Го

MR THORP

MOD

MR AGGLETON

Doe

MR SCHOLAR BY

MR LOCKWOOD

коский

DDQ MOD.

Fix Price Defence Digit

(mifials maddresses

-

eather

letter with de Giunstfalten

MBE

HONG KONG

DEFENCE AGREEMENT

1.

Department HKIOD

We understand that when the quarter-Master-

General, Sir William Jackson was in Hong Kong

recently there was some infor discussion about the trigger point & the effect of Article 3(i)(a) of the Memorandum

of Understanding having been reached (i.e. works

above costs having risen by over 50% on the April 1971

And that know you is

price level 1.) (Ancidentally

2.

.

We understand from the Ministry of Defence

that your general reaction was that this was a

technical question; that the agreement provided

for a review if costs rose to this degree; and that

the suggestion of discussions leading to an

agreement on supplementary contributions was

fully acceptable. This is borne out by the

St

Secretary Security's letters to me of 5 March 44 Grail.

3. I think there are two questions at issue.

would

First, are discussions on Article 3 (i)(a) bi

appropriate and timely in themselves; and second,

what are the implications for other concurrent developments? On the first question, I understand

it is common ground that the trigger point

We could therefore, os has been exceeded.

CONFIDENTIAL & PERSONAL,

/in