CODE 1877
CESTORA ET
D36 - Mr Ward
Copies to:
AUS(GS)
Head of Fl(AD)
HM Treasury (Mr Hansford)
FCO (Mr Janvrin
HK10D)
HONG KONG
J
DEFENCE COSTS
Reference. I/DS1/303/10/9.
Da
390
2.
Your D/DS6/46/66/1 of 24 Nov refers.
I attach a suggested reply to paras 1-3. Rather than merely quote figures, I think it wise to refer back to our discussion in Hong Kong as the tone of recent Hong Kong telegrams implies that we in MOD are dragging our feet which, on this aspect at least, is just not so, as evidenced by para of tel 896.
3. HQLF may wish to change the breakdown slightly if they come up with identifiable savings down to IIK 8, 450m by the end of the month. If necessary, we can presumably amend the figure at any time until theGovernor calls on the Minister of State.
Are you asking Hong Kong to copy, this reply to HQBF or should I signal the breakdown separately? The former course might save time
and effort.
4.
My comments on the remainder of your draft reply are as follows:-
a.
Your para 2. I understand the reason for this approach, but it might be unfortunate if this very minor point were to remain at issue on ↳ Dec. I agree that 5(B) adds little to the MOU and that we should press for its deletion. Could we not agree, outside the specific text of the MOU, to something like the suggestion in the draft attached to my minute of 14 Nov:
during the first quarter of 1977 you review progress with HQBF, with a view to drawing up a timetable for the detailed re-examination of garrison strengths and units." This might replace the third point of your formula.
COSES
b. Your para 3. To give the suggested amendment to the MOU sone bite, add after "allowances" in the penultimate line "leading to an upwards adjustment of LOA".
24 Nov 75
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DG JONES
DS1
Ext 7700 MB
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