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BACKGROUND AND ARGUMENT
4. The background to this matter is contained in
the Annex to this Brief.
5.
Although it has not been possible to secure
inter-departmental agreement on the recommendation
to be put to the Defence and Overseas Policy
Committee, the form of the draft Memorandum has been
agreed with the departments concerned who have been
made aware of the recommendation which the
Secretary of State is advised (see paragraph 8 of
the draft) to put to the Committee.
6. The options listed in paragraph 7 of the
draft Memorandum have been included at the request
of the Treasury and the Ministry of Defence.
(One other option, namely a reduction in the size
of the garrison, has by general agreement been
omitted because it would undoubtedly cause the
Governor's unofficial advisers to harden their
attitude still further and to withdraw or reduce
even the offer that they have been prevailed upon
to make - see paragraph 5 of the Memorandum and
paragraph 14 of the Annex to this brief)
7. Although the Ministry of Defence, in particular
are reluctant to move at all from the figure of
£8.5 million (option (a)), there is little doubt
that both they and the Treasury recognise that a
contribution of this magnitude will only be
obtained if it is imposed upon Hong Kong.
18.
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