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8. So far as option (b) is concerned, it is
understood that there would be a reasonable prospect
of agreement by the Ministry of Defence to a solution
which provided for an average contribution of
£8 million per annum over five years, or £8.5 million
over seven years. Such a solution would probably
*
also be acceptable. to the Treasury. However, in the
view of the Governor (which is shared by the Department)
it is extremely unlikely that a contribution of even
this order would be forthcoming unless it was likewise
imposed on the Colony.
9. The Governor has strongly advised that Her
Majesty's Government should not impose a contribution
on Hong Kong without making some further attempt to
reach agreement with his unofficial advisers. He
considers that if there is to be any hope of reaching
agreement, Her Majesty's Government will have to
reduce their demand for a contribution of £8.5 million
per annum for a five year period. He has accordingly
put forward the following alternative proposals which
he thinks would stand a fair chance of acceptance by
a majority of his unofficial advisers on the Executive
Council (although he is not so sanguine about the
likely attitude of the Unofficial Members of the
Legislative Council):
(a) Over a period of seven years the basic
contribution by Hong Kong should be as
follows (all figures in £ million sterling)
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