Registry No.

DEPARTMENT

NOTHING TO BE WRITTEN IN THIS MARGIN

SECURITY CLASSIFICATION PRIORITY MARKINGS

XTop SecretX

Secret

Flash

Xoofdential

*Restricted

XUnclassified

Immediate Priority Routine

}

* Date and time (G.M.T.) telegram should

reach addressee(s)..............

(Date).

Despatched

PRIVACY MARKING

In Confidence

En Clair Code

Cypher

Draft Telegram to:-

Governor Hong Kong

No.

(Date)

And to:-

Repeat to:-

Saving to:-

Distribution:-

As for Hong Kong telegram No 528

Copies to:-

As for Hong Kong telegram No 528

[Sec

"Security classification' -if any

[ Privacy marking

-if any

[Codeword-if any]

Addressed to

telegram No....

And to.

1

GOVERNOR HONG KONG...

repeated for information to

Saving to.............

Your telegram No 528.

DEFENCE CONTRIBUTION

1.

(date)

Decision set out in my telegram No 553 was taken

by Ministers collectively and I can assure you that

they had before them full details of your own

proposals.

2. Your paragraph 2. Figures in paragraph 2 of

my telegram under reference were included to

illustrate the kind of arrangement that HMG would be

prepared to accept and in the example given the

balance of capital works programme above £15 million

would be paid for by HMG. If it would help you in

presenting the terms to your Executive Council there

would be no objection to increasing the capital element

and reducing the recurrent cash element of the

contribution as indicated in your paragraph 2

provided that the total annual contribution remained

at £8 million over the five year period.

1 SECRET

13.

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