3017
SECRET
49
Flag
3:
Sir L. Monson
HONG KONG DEFENCE CONTRIBUTION
In discussions between the Defence Secretary and the Governor
of Hong Kong on 25 June the Governor suggested that, as a first
step towards the negotiation of Hong Kong's post-1971 defence
contribution Hong Kong officials should work out a figure and try
it out on us at official level. These preliminaries would precede
any reference of this issue to the Governor's Executive Council (see paragraph 5 of MOD record attached).
2.
The Ministry of Defence wish to follow up this proposal
promptly and have asked for a meeting with us and the Treasury (arranged for 11.15 a.m. on Thursday, 31 July) "to consider how the
matter should be handled and for some preliminary discussion of what
our objectives should be in the negotiations with Hong Kong".
3.
I recommend that :-
It
(a) We agree forthwith to the acceptance of the Governor's
proposal. The usual strong reaction can be expected
when the Governor puts the question of an increased
defence contribution to his unofficial advisers.
might help to minimise this (and improve the Governor's prospects of successfully handling the matter) if we
could in preliminary consultation with Hong Kong at
official level reach some understanding on the order of
contribution expected and the basis on which it is to
be calculated.
But the MOD and Treasury must clearly understand that
even if this preliminary process leads to some substantial
measure of agreement with the Governor, it will not be
/ the end
SECRET
Page 60Page 61