3
SECRET
(covering TOP SECRET annex)
There seem
of revenue to a fixed sum negotiated from time to time.
no good arguments for varying that arrangement. There is reason
to think from discussions at official level that the Treasry may
have some sympathy for this view and may not support the Ministry
of Defence arguments.
28.
In the course of official discussions on this paper the
Treasury drew from MOD an admission that forces at the levels
proposed by the Defence Secretary could be provided from within
the Defence Budget ceiling assuming a Hong Kong defence contri-
bution no less than that now being paid. The Secretary of State
might find some advantage in drawing this point out by means of
a question to the Defence Secretary.
May, 1968
Hong Kong Department
28
SECRET
(covering TOP SECRET annex)