240.
Page 163
Mr. Fairclough
20/5
Mr. Campbell 2012.
Mr..
Mr.
Sir
1. Wallace 21
E. Melinele N5
Permt. U.S. of S.
Parly. U.S. of S.
Minister of State
Secretary of State For signature by the S/S
Your Reference......
DRAFT (NOTE
TOP SECRET
2.2585
A
Date...
The Rt. Hon.
Derek Heathcoat Amory, M.P.,
Treasury.
In Defence Committee on 5th February, 1958, you were to consider
in consultation with
(205)
Flag
L
invitedi
The Minister of referre
< and meself Dunean bandys te-emsider,
in connectim wit koerapan - strips of the Hong Kong nnny Garrison,
whether some offer could be made to the Hong Kong Government in
respect of War Department land in return for their undertaking
to meet the additional costs involved in an increase in the
Army Garrison over the six major units so far agreed. N.P. 2.
there have since then offimale). As you will know, discussions have ten bsequently
proceeding between our Departments and the ether Departments
concerned. These have led, as you w
fo
of recent telegrams from the Governor's of
agreement that:-
have seen from copies
to bio
(1) The questions of Rayfor additional units for the
Harrison and of compensation in respect of War
Department lands should be treated as entirely separate
(941).
FURTHER ACTION
Copies to
1. Rrlton Duncan Sandys, MP
Muisty of Defence Дерексі
(242).
2. Rr Hon Christopher Soames,
Wan Office
Page 163
MP
(P8493) 45337/7500 2MP 10/57 AT&S. 768.
(ii) The full Defence contribution of £1 m. should continue
perenduent to be paid, related to affarrison of six major units
(iii) An additional special contribution of £250,000 per annum
should be paid in respect of each additional unit
temporarily stationed in Hong Kong.
N.P.
This means that the Governor has now accepted in full
the conditions which the Treasury and the Service Departments
have all along considered appropriate for the financing of the, additional units. The Cabinet has already agreed at its
Page 163
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