MINISTRY OF DEFENCE,
M. Asteban
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May deas
(235)
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STOREY'S GATE,
238A.
LONDON, S.W.1.
15th May, 1958.
(235)
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I have read with some surprise signal No. 412 from the Governor of Hong Kong about the additional Army units. gratifying that, even at this late stage, he has come to the conclusion that the question of the cost of the two units and the lands problem are entirely separate. But one cannot refrain from pointing out that it is only he who has associated these two questions and that this association, which we have always deplored, has been the stumbling block throughout the discussions. He is quite right when he says that he understands that "the War Office are fully alive to the necessity for distinguishing between the two matters." We have all been alive to this necessity except the Governor of Hong Kong.
Nevertheless, having said all that, I hope that his signal now opens the way to a solution. Is not the next step to send him a reply welcoming and agreeing with the first paragraph of his signal No.412 and seeking confirmation that he is willing to pay the extra cost of stationing the units in Hong Kong instead of in the United Kingdom (about £250,000 a year each) and the capital expenditure (about £100,000) necessary for their accommodation; and that the question of the terms on which the land should be disposed of by the War Office and Admiralty will be dealt with separately and on its own merits and in no way linked with payments made in respect of the two extra units.
If the Governor confirms this, we have achieved the purpose laid on us by the Defence Committee at their meeting on 5th February, namely, that "no additional charge should be imposed on the defence budget in respect of any increase in the Army garrison in Hong Kong beyond six major units". A simple report to Ministers should then be possible.
I am sending copies of this letter to Drew, Radice and Nairne.
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E. Melville, Esq., C.M.G.,
Colonial Office,
Church House,
Great Smith Street,
London,
S.W.1.
Page 166
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19 MAY 1958
SECTION Påge 166 of 283
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Ref. No. COM 143/51/01
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From the Secretary of State for the Colonies
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