3.
W(B)L 51-7406
NOTHING TO BE WRITTEN IN THIS MARGIN
SECRET
four major Army
units plus certain Naval and Ani elements
Secret
that it would be best if, in the light of the
situation as he saw it, he were to assess the
maximum sum which he believed he could
persuade his Executive and Legislative
Councils to accept as a fair contribution;
and when then armed with HMG's agreement in
principle to this sum, he would put the
matter to his unoffidi al advisers.
5.
Accordingly the Governor, on the basis
of the size of the defence forces to be
retained in the blony, and taking into account
HMG's intention to retain a modest presence
East of Suez, but without being able to take
any soundings of Unofficial opinion, has
offered to try to obtain an increase in the
present rate of contribution from £5 million
per year to £7.5 million. An agreed
proportion of this contribution ould be
ear-marked as a contribution to the Services'
capital works programme (with virement by
mutual consent, at any time, between the
recurrent and capital elements of the con-
tribution) on the understanding that such
works, (if no longer required by HMG) would
become the property of the Hong Kong Govern-
ment. In addition the Hong Kong Government,
within its contribution, would continue to
pay for the cost of maintaining military à
buildings and installations required for that
proportion of the force which can reasonably
be assessed as being required for internal
security (four m
(four major units) though in a
situation where the Chinese would plan to
stir up internal disturbances as the first
stage in an assault on the Colony, to be
Secret
/followed