Correspondence regarding the negotiation of an agreement between the Science Research Council and the Committee for Scientific and Industrial Research on funding for the South African Astronomical Observatory at Sutherland. The papers include G.A. Harding's assessment of Cape staffing, 14 May 1970; a draft inter-agency agreement for July 1970; objections to the project from the U.S. Naval Observatory and others; an inventory of Cape equipment, 23 March 1971; suggested amendments to the inter-agency agreement; a paper on 'Programmes for a South African Observatory'; a copy of an article by W.S. Finsen entitled 'Why Close our Observatory', July 1971; and material on initial arrangements for extra equipment, including vehicles needed at the South African Astronomical Observatory. The correspondence is largely between G.A. Harding and members of the Science Research Council, including Dr F. Hewitt and J.F. Hosie.