W(B)L 51-7406
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3. The Unofficial Members of the
Governor's Executive Council at first
proposed £5.5 million a year.
After
prolonged negotiations they reluctantly
offered to recommend to the Legislative
Council a "voluntary token" contribution of
£7 million per annum for 7 years.
4. The Governor now considers that to
reach agreement HMG will have to come down
from the figure of £8.5 million; and that
he could probably negotiate a settlement
based on a contribution of £7.5 million
per annum for 7 years (details at Annex I).
5. The following options are open to us
(a) To stand out for £8.5 million
(6)
per annum for 5 years.
To negotiate a settlement at a
figure between £7.5 million and
£8.5 million per annum (preferably
for 5 years). A possible scheme
is illustrated in Annex II.
(c) To adopt the Governor's suggestion
of an average of £7.5 million
per annum for 7 years.
(a)
To accept the offer of the
6.
Unofficial Members of the
Executive Council (£7 million
per annum for 7 years).
In the Governor's opinion (a) and (b)
and possibly (c) will involve the exercise
of the reserved powers under the Royal
Instructions (use of the Governor's original
and casting vote in the Legislative Council
to obtain an official majority for the
under necessary Appropriation Bill) or the
the Letters
2.
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