25
1269
IMMEDIATE
CYPHER/CAT A
FM HONG KONG 310850Z
SECRET
SECRET
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TO IMMEDIATE FCO TELNO 619 OF 31ST AUGUST
YOUR TELEGRAM NO 611,
DEFENCE CONTRIBUTION.
week
Ano
1-9-71
.ST
142)
147
(46)
EXECUTIVE COUNCIL HAS TODAY (315T AUGUST) AGREED TO AN ARRANGEMENT
WHICH WILL PRODUCE AN AVERAGE ANNUAL CONTRIBUTION OF £8 MILLION
OVER THE NEXT FIVE YEARS BEING PUT TO FINANCE COMMITTEE. UNOFFICIAL
MEMBERS MADE IT CLEAR THAT THEIR AGREEMENT WAS TO THIS FIGURE
NOT TO ANY PRINCIPLE ON WHICH IT MIGHT BE SAID TO HAVE BEEN ARRIVED.
AT.
2. THEY WERE RESIGNED TO SETTLING ON THIS BASIS FAUTE DE MIEUX
BECAUSE THEY FELT THEY HAD NO SATISFACTORY ALTERNATIVE: BUT WERE ON
THE WHOLE MORE RELAXED ABOUT THE POSITION THAN MIGHT HAVE BEEN EXPE-
CTED. THE ABSENCE OF SIR CHO-YIU KWAN AND Y.K. KAN, BOTH STILL AWAY ON HOLIDAY, MAY HAVE HELPED. THEIR TEMPORARY REPLACEMENTS
P.C. WOO AND SZETO WAI, PROVED REASONABLE: AND, BEING LEGISLATIVE COUNCILLORS, SHOULD BE USEFUL WHEN FINANCE COMMITTEE IS APPROACHED SEE PARAGRAPH 6 BELOW.
3.
AGREEMENT IS SUBJECT TO (A) THE CONDITIONS SPELT OUT IN PARAGRAPH 3 OF YOUR TELEGRAM 553, AND PARAGRAPH 3 OF MY TELEGRAM 528 AS MODIFIED BY PARAGRAPH 5 OF YOUR TELEGRAM 592:
(34528
(B) THE CONTRIBUTION BEING DISTRIBUTED AS SHOWN IN THE FOLLOWING PARAGRAPH.
THE DISTRIBUTION IS (IN £ MILLION)
YEAR
MAINTENANCE
AND MINOR
CAPITAL CASH
WORKS CONTRIBUTION
TOTAL
WORKS
1971/72
2.2
2.9
2.4
7.5
RECEIVED IN
1972/73
2.2
1973/74
2.2
QU QU
2.9
2.4
7.5
REGISTRY No.51
3.4
2.4
8.0
-1.SEP 1971
1974/75
2.2
3.9
2.4
8.5
1975/76
2.2
3.9
2.4
8.5
HKCKIO/2
TOTAL
11.0
17.8
12.0
43.6
IT IS RECOGNISED THAT THE MAINTENANCE AND MINOR WORKS
FIGURES ARE NOTIONAL: AND THAT THERE MAY BE VIREMENT OF CAPITAL
EXPENDITURE BETWEEN YEARS AS A RESULT OF WHICH THE AMOUNTS
ACTUALLY SPENT YEAR BY YEAR MAY DIFFER SUBSTANTIALLY FROM THOSE
SHOWN:
SECRET
/5. THERE