(134392) Dd. 737115 75CM 4/70 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

SECRET

DRAFT SUBMISSION

To:-

Type 1 +

From

Telephone No. & Ext.

Department

Hong Kong

In Confidence

HONG KONG DEFENCE CONTRIBUTION

PROD

A

B

AQ

C

1. The Secretary of State, together with the

the

Chancellor of the Exchequer, the Defence Secretary

Secretary of

chalia

Семина

к

and the Minister for the Environment, agreed in

Cable to negriake with

February that if the Hong Kong Government were to offer- his Executive and Legii Palion Commciliam

pay an annual contribution of £8.5 million for the

Sefence

next five years towards the costs of the cult

stationed in the Colony

such a

قا

Canhikulin subjent aph

offer would be curtain

acceptado Her Majesty's government.

ARGUMENT

2.

Conditime

The Governor has since been attempting to persuade

his unofficial advisers to agree that the Hong Kong

Government should/make an offer of this amount but, as

was expected, he is having difficulty in doing so.

His unofficial advisers have, in fact, submitted

representations through the Governor to the Secretary of

State setting out the reasons why they consider that

the Colony should not pay anything more than a token

contribution towards the costs of the Garrison.

A

The

Governor has forwarded these representations to us with

his comments and the unofficial members now await

Her Majesty's/Governments reply.

13.

The matter has been discussed with the Treasury,

the Ministry of Defence and the Department of the

The arguments adduced by the unofficial

Environment

1 SECRET

/members

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