CO_968_583_DEFENCE_OF_HONG_KONG_1957_1959 — Page 25

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By the time this reached me it was too late to get a further expression of views from Sir Robert Black. I had, in any case, told Mr. Campbell, when he spoke on the telephone about this brief, that I felt that the S. of S. would have to decide, on the basis of the papers now in our hands, what line he should take in Defence Committee tomorrow. I am confirmed in that view by a further reading of this file..

I think that the only way out of this impasse is through a. deal on the lines of the Grantham proposal. That proposal has been rejected in the Minister of Defence's paper and I do not under-estimate the difficulty of reviving it. We cannot expect any Treasury support - probably the reverse, to judge from our experience over Murray barracks. Argument about title can obscure, but not win over, our opponents.

However, the alternative threatened in Sir Robert Black's latest message, i.e. of a reduction in the Defence contribution if the two extra units are not provided, may produce some effect on the Treasury (it does not have any direct bearing on the Service Votes). I doubt whether, in the end, we could really back the Governor in such a reduction, giving the size of our defence effort in Hong Kong and the relative wealth of the

Moreover, Colony compared with other overseas territories.

I see little prospect of shaking the Minister of Defence, or the Service Departments, in their determination not to carry the extra costs of these two units on their own Votes, which have been so severely primed this year. But failing any progress on the Grantham compromise, this is the only card we can play.

I think the S. of S. would be justified in taking this line- as the brief opposite proposes in spite of Sir Robert Black's Anne message at (203).

B

As a mere matter of tactics, it is obviously a better ore, although the outcome may be the same either way.

In the SOFS. 204 Bring for the

205 Extract 33/2nd rty - Item 2-5/2/58

-Hong Kong -- Army

Gorrizan

Eu

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4th February, 1958.

Mr. Fairclough

You will see from the minutes of Defence Committee of the 5th February that it is still going to be a little time before we get a decision about the replacement of the 74th L.A.A. I have discussed this with General Hamilton, and as the unit must leave on the 2nd March, and shipping to take it out is already on the way, we should now warn the Governor of Hong Kong that, whilst we will do our best, it may be that when the time comes for the unit to leave we will still not be in a position to announce the future arrival of a replacement.

The telegram at (201) also needs some action.

2.

3. It does not appear that any further information is required in respect of the War Department lands in the Hong Kong dockyard, but I think it might be useful if we obtained

value from Hong Kong some estimate of the best of the different lots referred to in the savingram at (188) on this file, and an indication of the use to which the Hong Kong Government were proposing to put them if they were released.

Alagelett of 283

(A. Campbell) 7th February, 1958

Part 55y. (Radice) emp - Sec. - 12 8 of 283

of 283

D.M.147/326/01

go luter to w.o. (chanetary

My Wallace M. A. Campbell

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I hard attach opposite 3 draft

in reply to (201) (203) "and (206) I hope self explanatory

action at present

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there papers.

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DEF

127/337/01, approved by Defence Cree., speaks

of "a small

aly af

a small number.

authautative ?

Re chaps B, I have

2.

3.

Re daft C

agument because

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comments.

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4 is worth maing, wo

at 'x' of parar. рога. I doubt whether the

how long the negotiations take

will in

and at

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The Ademcialty

be negotiating in detail lugth about the rest of it

land and, if not therwise disposed of,

The items now

Page 26 presumably

I would think

h.

being considered would

be absorbed into the

ранитовы "general negotiations. of draft c

до

to

Should part 260F 7 8 3

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