SECRET
11.
Against this background, the MOD would be willing to consider carrying on with operation of the Unit for civil purposes, only against undertakings that:
5.
(a) the full cost of the RAF continuing operation would be met by the liong Kong Government;
(b) satisfactory arrangements would be made between
the Hong Kong Government and the United States authorities about the supply of spares and servicing;
(c)
(a)
every effort would be made to hand over operation a civilian firm such as Cable and Wireless;
every effort would be made to press on with provision of a new civil radar at Kai Tak.
I
I should add that (notwithstanding Dawson's minute of 20 December 1974) MOD consider that such operation would bear no relation to the Defence Review or to the forthcoming negotiations on the post-1976 defence agreement. Given that continuing use of the radar for ATC purposes would have no military value (since all the surveillance personnel would have been withdrawn), there seems to be some justification for this view. However, we have hinted to MOD that RAF operation of the unit might only be required up to about April next year; and you may consider that there are grounds for asking G to meet the cost until then. am perfectly prepared to try this out but I should warn you that MOD at present still envisage total closure of the Unit within the next 3-4 months, and still consider that long kong should be asked to pay the full cost of the residual operation after that time. It is thus our (not surprising) impression that they would be more likely to agree to continued operation (subject also, of course, to fulfilment of the other conditions above) if ilong Kong paid. But I recognise that this would, of course, require a substantial shift in your position.
6.
MOD clearly still have some doubts about whether the extra radar cover would justify the effort to overcome all the practical difficulties involved. This may partly be because they are over-estimating some of the problems, although they know that you have already been in touch with the American Consul-General and with Cable and Wireless. It would therefore be helpful if you would confirm that you do consider that the effort to overcome the difficulties would be justified and, if so, whether ilon, Kong could line with the conditions listed in paragraph 44.
сс
BE Robson Esq, DG8, MOD Mr Jackson, Defence Dept.
Yours eve
Laurence
PL O'Keeffe
Hong Kong & Indian Ocean Dept.
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