SECRET
10.
If
This optimism may be justified, but we have to submit to Ministers the answer to their question about the presentation to Executive Council of a demand for a 75% contribution or more. we can get agreement at official level to postpone consultations until May on the lines suggested, I think we should then say to the Governor, in effect, "Here is a statement which should enable us to put off consultations as you desire. CBF and CDS have also produced new proposals which could get the total cost down to around £30 m. You said that this would be nearer to something that would be a viable proposition. Ministers will have to be convinced of the need for delay before consultations. A resolute continuation of your non possumus would make this difficult for them to swallow. Could you now agree that, provided consultations are put off and the total cost brought down as suggested, and with any reservations you may wish to make about the final outcome, you would be willing to put the 75% proporal, or a variant of it, to ExCo in May.
11
9 October 1974
cc
Mr Jackson
Mr Male
Sir D Watson
DCS
A C Stuart
Hong Kong & Indian Ocean Dept.
Mr Stuart
I agree wholly with the line taken in your minute of October 9. It would facilitate agreement at the Sub-Committee meeting tomorrow if I were to write this afternoon to Mr Howard Smith, with copies to Mr Hudson (MOD) and Dr Frank Hall (Treasury) on the lines of para 3 of your minute. Could you kindly provide a draft for this purpose?
10 October 1974
cc: Sir D Watson
Mr Male Mr Jackson
M
J A Thomson
SECRET
/Mr Crowson Cro
rowson
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