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117
Secretary of State
HONG KONG DEFENCE CONTRIBUTION
I agree that the Chancellor of the Exchequer seems bound to
support Lord Carrington.
2. I hope that you will nevertheless fight strongly for
£7.5 million (Annex I). Because it is closer to the Unofficials
offer than to £8.5 million there is a sporting chance that they
will accept it. I am sure they will continue to argue if £8.0
million (Annex II) is proposed.
3. If DOPC insist on £8 million then I think the Governor must
be instructed that HM Government are prepared to authorise him to
use his reserve powers to force £8 million through. If contrary
to expectation you get approval from DOFC for £7.5 million the
instructions on reserve powers will of course be the same.
4. If it becomes clear to the Governor in trying to get agreement
for £8 million that all his unofficials in ExCo will resign he will
no doubt report back and DOPC will have to think again. But I
would not be in favour of giving the Governor discretionary
instructions if the Cabinet decision is for £8 million. If the
same thing should happen for £7.5 million we should have to bite
on the bullet and push ahead,
13 July 1971
Mr. Royle
IUS
Sir S Tomlinson 3ir S Crawford
Defence Dept. HK Dept.
SECRET
KM Wilford