SECRET
Nor have they suggested that the amount of Hong
Kong's contribution should be fixed according
to any specific formula. Whatever figure may
be agreed must however be based on some assess-
ments of the appropriate amount, each for their
own particular reasons, by both Hong Kong and
HMG.
The comparative figures in my earlier
message were included simply to illustrate that
HMG were not seeking a contribution from Hong
Kong any greater than previous contributions,
in terms of the total cost of the Forces or of
Hong Kong's estimated revenue.
3. I welcome your assurance that a
contribution should be made and I certainly
agree that it should be one that the Colony can
afford. I must however say that even having
regard to the Colony's other financial
commitments I find it very difficult to accept
that Hong Kong cannot afford a substantially
increased contribution. At the same time I
gladly assure you that if during the period of
the new agreement the economy of Hong Kong were
to suffer such a serious adverse change that the
continued payment of a contribution of £8.5 million
could be shown to be an unreasonable burden
on the Colony's finances, HMG would always be
willing to consider any representations that
Hong Kong might wish to make on the matter.
Copies to:
MR A F THORPE
F1(AIR) 2 MOD
MR RJ SMITH DOE
LAMBETH BRIDGE HOUSE
MR P D NAIRNE MOI
MR R GEDLING EDLING TREASURY
MR E STRETTON DOE
LAMBETH BRIDGE HOUSE
MR F H GWYNN MOD
NOTHING TO BE WRITTEN IN THIS MARGIN
2.
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(8430) Dd,033246 600m 9/66 G.W.B.Ltd. Gp.963
14.