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it would be inopportune to seek an increase in the current contribution for Works Services and agreed to underwrite up to £450,000 for works outside the £M2.4 agreement. Without arther contribution from the Hong Kong Government Treasury approval would be necessary for about £600,000 (that is, the balance of the £700,000 (£250,000) plus £350,000 for Gurkha
Os) to be borne on UK funds. Further consideration is being given to whether we should not attempt to persuade FCO and Treasury to agree to an approach to the Hong Kong Government to cover this sum, because there have been some unofficial indications that the Hong Kong Government might be prepared to consider a further contribution towards works services.
Conclusion
9. Pending decision on the future composition of the garrison (para 6) followed by further discussions with FCO and Treasury (possibly within the framework of the DOPC) it is neither possible nor desirable for you to enter into discussion with the Hong Kong Government about the present or future Defence Contribution. This paper is produced as a background brief for your own information should you wish to discuss with UK military officials in Hong Kong.
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