Defence, we are seeking £8.5 million a year from Hong
Kong over a period of five years as a contribution
towards the costs of maintaining British armed forces
in the Colony. The Governor considers that one of the
main reasons for the lack of progress so far in the
negotiations has been the resentment which has
accumulated over a period of years over actions by HMG
which have appeared to disregard Hong Kong's needs,
rights and vital interests.
If we decide that we cannot give temporary relief
from the new tariff, the Governor of Hong Kong is
certain to find it even more difficult to secure the
agreement of the unofficial members of his Legislative
Council to the proposed contribution towards the cost
of keeping HM armed forces there.
I therefore very much hope that you will feel
able to reconsider Michael Noble's request in the light
of the factors I have set out above.
CONFIDENTIAL
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