CYPHER CAT A

FM HONG KONG 101906Z

SECRET IN REGISTRY No. 51

11 FEB 1971

HICILE/G

A0 0

21

SECRET

TO ROUTINE F.C.0. TELNO. 85 OF.10 FEBRUARY 1971

PERSONAL FOR MONSON FROM GOVERNOR

YOUR TELEGRAM NO.113 TO ME

LAST

REF.

22)

TEFENCE CONTRIBUTION

AS ADVISED, A PAPER ON THE LIPES ALREADY DISCUSSED WITH YOU WAS PUT TO EXECUTIVE COUNCIL ON 9TH FEBRUARY

2. THE MEETING WAS AS DIFFICULT AS EXPECTED AND, PREDICTABLY, UNOFFICIAL MEMBERS' FIRST REACTION WAS TO REFUSE EVEN TO CONSIDER A CONTRIBUTION OF THIS MAGNITUDE. THEIR INITIAL LINE WAS THAT THE MOST THEY FRE PREPARED TO CONSIDER WAS £5.5 MILLION, BEING A SUM NOW REPRESENTING THE HONG KONG DOLLAR EQUIVALENT OF £5 MILLION AT THE TIME OF THE 1966 AGREEMENT (1.E. BEFORE DEVALUATION)

2

3. THEIR ATTITUDE WAS THAT THEY COULD CONSIDER ONLY A TOKEN FIGURE

SEMICOLON THEY APPARENTLY DISLIKED ANY FIGURE BASED ON A PRINCIPLE

OF ANY KIND SEMICOLON ONE OR TWO COMPLAINED AT THE LACK OF DETAILED

SUPPORT FOR THE FIGURES OF COSTS WHICH HAD BEEN SUPPLIED, AND OTHERS

PERHAPS REALISED THAT A DEMAND FOR DETAIL WAS HARDLY CONSONANT WITH

THE 'TOKEN'' CONCEPTION. THEY SUGGESTED SOME MILITARY SUPPORTING

SERVICES (E.G. SCHOOLS) WERE OVER-LAVISH IN PROVISION AND COULD BE

SUPPLIED NORE CHEAPLY BY USING LOCAL FACILITIES OR SUPPLYING IN KIND

SEMICOLON THEY HARKED BACK TO THE GRIEVANCES MENTIONED IN MY TEL.

NO. 23 TO YOU. THEY WERE ALL ALSO OBVIOUSLY APPREHENSIVE OF THE

REACTION OF LEGISLATIVE COUNCIL UNOFFICIAL MEMBERS AND THE PUBLIC

REACTION ( AS INDEED I AM, TOO, OF COURSE). THEY DID NOT EXPRESS

THEIR VIEWS PARTICULARLY COHERENTLY.

/4.I DID NOT

SECRET

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