PRIORITY
CYPHI CAT/A
FM HONG KONG 274315Z
SRET
SECRET
TOP COPT
TO PRIORITY F.0.0. TELEGRAM NC. 134 OF 27 FEBRUARY.
FOR MONSON FROM GOVERNOR.
*
30
MY TELEGRAM NO. 125: DEFENCE CONTRIBUTION.
LAST
28
31
THE UNOFFICIAL MEMBERS OF EXECUTIVE COUNCIL PRODUCED THEIR
SUBMISSIONS ON 27 FEBRUARY, WITH THE REQUEST THAT I FORWARD IT.
THEY HAVE UNDOUBTEDLY HAD GREAT DIFFICULTY IN AGREEING ON A DRAFT,
2. THE COVERING LETTER CONTAINS THE PHRASE " THE MEMORANDUM
CONTAINS NO RECOMMENDATION FOR A PARTICULAR SUM, SINCE THE
UNCFFICIALS FEEL THAT THE POINTS OF PRINCIPLE DEALT WITH IN THE
MEMORANDUM NEED FIRST TO BE CONSIDERED''.
3. I HAVE ARRANGED AT THEIR REQUESTTO SEE THEM AFTER THE
EXECUTIVE COUNCIL MEETING ON 2 MARCH. IT WOULD BE BEST I BELIEVE
TO WITHHOLD MY COMMENTS ON THE SUBMISSION ENTIRELY UNTIL AFTER
THAT MEETING, BUT I FORWARD IT NOW TO ENABLE YOU TO STUDY IT
FIRST.
4.
TEXT OF SUBMISSION FOLLOWS, BEGINS:-
"PART 1. HISTORICAL.
@VED IN RISTRY N.51 -11.1971
аккила
IN H.E. THE GOVERNOR'S EROADCAST TALK ON 23 DECEMBER 1966 TT
WAS ANNOUNCED THAT HONG KONG HAD OFFERED TO HMG A FOUR YEAR
AGREEMENT TO PAY A DEFENCE CONTRIBUTION OF POUNDS FIVE MILLION
A YEAR. THE OFFER WAS MADE OUGTE AS A GESTURE IN RECOGNITION
OF THE UK'S ECONOMIC DIFFICULTIES UNCUCTE. THE AMOUNT
WOULD BE PAID EACH YEAR IN THE FOUR FINANCIAL YEARS 1967-08 TO
1978-71 AND IT WOULD HAVE TO BE APPLIED QUOTE NOT ONLY TOWARDS
PARTIALLY MEETING THE RECURRENT COSTS OF THE GARRISON BUT ALSO
TO COVERING BOTH THE REDUCED BALANCE STILL TUE UNDER THE COM
CAPITAL WORKS. PROGRAMME. AND WHATEVER OTHER FINANCIAL OBLIGATIONS
HONG KONG STILL HAD UNDER PAST AGREEMENTS''.
SECRET
/ 2.
THE DIS