BY

Bep Narch, 1971

the defence

contribution agreement has to be renegotiated, to the new force levels Rinisters

karinę regard hermej

have approved for the Hong Kong garrison after our

Malaysza

withdrawal from Singapore. / Mall

political reasons

in 1971. For

the Govenor is that Thinki it recessary

2

to avoid being faced with

demand" from HMG

for a higher contribution and has suggested exchanges

at- official level

wit

measure of agreement on

a view to arriving at some

an

Offer" from Bee Colony.

We have agreed to this and in our letter of the

qu October (copus attached) have franded him welz facts & Figures

on which to base consideration of his offer. This is only the first vorna in what may well be protracted exchanges at official level.

2.

There will

have been little time for have been studied in Hong Kong.

reactions may be exprened

our letter to Ви реветьтати

and

These can be

to reject the possibility that Hong Kong

expected

Could contribute

cost of forces

The full budgetary cost of

for internal semrity (1.e. $10

plu

78-9

10-11 million per annum

an element of the cast of capital works).

million p.a.

is

Thongsht

to be the maximom

figure that the Gereman's official advisers will

Consider politically possible of If part- negotiations the reduced fiquis will be supported

are any guide

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