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©2002442 MUHAMELIATESECRET
F OF HONG KONG
TO
BT
PARAPHRASE NOT REQUIRED
NO UNCLASSIFIED REPLY OR REFERENCS
C038CQ D
No. COPIEG
UK EYES B
DOP 12
AC
SECRET UK EYES BRAVO SECTION"
DIG KDO !
HONGKONG D002
tri
13 Reproduction Copy No. 5. of
A C.
5
Copies
A STO &
756
FOR SECCOS FROM CBFHK PD REF YOUR DOHONGKONGO2 OF 2318152UG po
GRATEFUL IF FOLLOWING BACKGROUND COULD BE PASSED TO CDS AND COS CMM AND CDS WILL WISH TO CONNECT WITH MY ECD 230305A AUG PD PLEASE
NOTE ALL MONEY FIGURES ARE IN POUNDS STERLING THROUGH CUT PD
REFERENCE ACLN GOVERNORS TELEGRAM 853 OF 23 AUC PD
!.
ONE PD REF A MAKES CMM IN MY JUDGEMENT CMM AN EXCELLENT START IN
TRYING TO SOLVE TRICKY THREE SIDED EQUATION INVOLVING UK FINAN-
CIAL CMM UK DEFENCE AND HONG KONG GOVERNMENTS INTERESTS PD NAT-
URALLY AM COMPLETELY UNAWARE OF WHAT HNGS REACTION TO TELEGRAM
WILL BE IN LIGHT OF OVERALL DEFENCE PRIORITIES CMM BUT AT LEAST
IT SEEMS TO POINT THE WAY TO FAIR AND SENSIBLE ARRANGEMENTS CMN
AND GOVERNORS ARGUMENT THAT HMG SHOULD AT LEAST BE SEEN TO BE
CONTRIBUTING SCMETHING ARE VERY CONVINCING PD AT SAME TINE
AND FOR THIS REASON I FELT IT WAS INCUMBENT ON NE TO CFFER THE
PROSPECT OF ECONCHIES AS A CONTRIBUTION TO A CONSTRUCTIVE AND
REALISTIC ATTEMPT TO SOLVE THE PROBLEM CMM PROVIDED THESE DID
NOT FUNDAMENTACCX AFFECT OUR OPERATIONAL CAPABILITY CAM OTHERWISE
THE GOVERNORS CHANCE OF SQUARING HIS CIRCLE OR FOR THAT MATTER
HMGS OF SQUARING THEIRS CHM WOULD BE SO MUCH MORE DIFFICULT PD
IN ANY CASE NA NEGATIVE ATTITUDE CH OUR PART WOULD HERELY DESTRLY
OUR CREDIBILITY AND ENCOURAGE THE HONG KONG GOVERNMENT CHM SPURRED
ON BY FINANCIAL PRESSURES CHA TO ATTENT ITS OWN MILITARY ANALYSIS
PD THIS WOULD BE MOST UNFORTUNATE PD I WOULD NOT PARTICULARLY
RELISH THESE ECONOMIES ESPECIALLY IN AN INFLATIONARY WORLD CHM
BUT BELIEVE THEY COULD BE ACHIEVED WITHOUT COMPROMISING CUR PROF-
ESSIONAL STAND ON THE FORCE LEVELS REQUIRED BOTH WITH OR WITHOUT
REINFORCEMENT.
N
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