SECRET
"Consideration of where the costs of the garrison should be borne
should be deferred but the Defence Secretary
should arrange
for the best assessment possible to be made of the full cost to us of
the Hong Kong commitment". This costing exercise is apparently
still in progress and we have no information as to when it will be
completed.
7. There the matter has rested. The current defence contribution
agreement does not expire until March 1971 and in the normal course
of events we would not expect to start negotiating a new agreement
until mid-1970.
30 July, 1969
b. 5. Cat
S.
(w. S. Carter)
Hong Kong Department
Copy to: Mr. Sykes, Defence Policy Department.