NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
9
aque
En.2319
SECRET
the defence contribution?.
it
Under the
existing agreement the Colony's contribution
towards the cost of maintenance and minor
works, notionally valued at £475,000 p.a.,
is very definitely included in the defence
contribution. It is reasonable to suppose
that the Governor (although he does not
mention the subject in his letter) assumes
that it will again be included in the new
contribution (i.e. in the £8 million).
The words in question are a bit too "tongue
in cheek" to cut any ice with him and might
indeed be counter-productive.
Paragraph 4: Last four lines
This sentence might well act as a
red rag to a bull. For one thing it
indicates quite clearly that we are embarked
on a process of steadily increasing Hong
Kong's contribution; and I am quite sure
that whatever the views of the MOD and
Treasury may be on the subject, Hong Kong
considers that it already contributes a
very realistic share towards the costs of
internal security measures
its
Paragraph 5: Lines 6 to 9:
This passage is unfortunately worded.
In effect it pooh poohs the Governor's offer
of £8 million, despite the fact that that
offer represents a 60% increase on the
present rate of contribution.
7. It is also for consideration whether
Ministers should be brought into the picture
at this stage. This is certainly a matter
which may well be raised during Mr. Royle's
visit to Hong Kong next month. I therefore
suggest that it would be advisable for the
Minister to become acquainted with the
situation as soon as possible.