PRIORITY
SYPHER CAT A
SECRET
28.8.71
(HKK 10/9)
18.8.71
FM F.C.O. 17112AZ
SECRET
TO PRIORITY GOVERNOR HONG KONG TELEGRAM NUMBER 592 OF 17 AUGUST.
(26)
31)
YOUR TELEGRAMS NOS 528 AND 549.
LAST
REF.
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DEFENCE CONTRIBUTION
NEXT
RCF.
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1. DECISION CONVEYED TO YOU IN FCO TELEGRAM NUMBER 553 WAS A CABINET DECISION AND YOU CAN REST ASSURED THAT WHEN TAKING IT MINISTERS HAD BEFORE THEM FULL DETAILS OF YOUR OWN PROPOSALS,
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2. THE ARGUMENTS IN PARAPGRAPHS 5 AND 6 OF YOUR TELEGRAM NO 528 HAVE BEEN FULLY CONSIDERED BUT THE FACT REMAINS THAT UNDER YOUR PROPOSALS HMG WOULD RECEIVE POUNDS 3.5 MILLION LESS DURING PERIOD 1971/2 TO 1975/6 THAN UNDER THE TERMS SET OUT IN PARAGRAPH 2 OF FCO TELEGRAM NO 553. MOREOVER, IN ORDER TO TAKE ACCOUNT OF RISING COSTS IT WOULD BE REASONABLE TO EXPECT, OVER A 7 YEAR PERIOD, A GREATER TOTAL INCREASE THAN POUNDS 1 MILLION OVER THE STARTING
FIGURE OF POUNDS 7 MILLION.
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3. MINISTERS COLLECTIVELY NOW REQUIRE A REPORT ON THE OUTCOME OF YOUR ATTEMPT TO SECURE THE SUPPORT OF EXECUTIVE COUNCIL FOR THEIR I PROPOSALS. IT IS NOT CLEAR FROM YOUR TELEGRAMS WHAT EXACTLY YOU HAVE. SO FAR SAID TO THE UNOFFICIAL MEMBERS ABOUT THOSE PROPOSALS. WHAT WE ARE ANXIOUS THAT YOU SHOULD MAKE CLEAR IS THAT ALL ALONG HMG HAVE SEEN NO JUSTIFICATION FOR THE COLONY'S NOT CONTRIBUTING AT LEAST AS GREAT A PROPORTION OF OVERALL GARRISION COSTS IN 1971/72 AS WAS AGREED IN RESPECT OF COSTS FOR 1967/68. THE IS NO EVIDENCE THAT THIS WOULD IN ANY WAY BE AN UNFAIR BURDEN ON THE COLONY. NEVERTHELESS MINISTERS HAVE AGREED TO ACCEPT A LITTLE LESS THAN PARITY AT AN AVERAGE OF POUNDS 8 MILLION FOR 5 YEARS. IF IT HELPS YOU MAY ADD THAT IT IS NOW KNOWN THAT THE GARRISON (EXCLUDING ALL WORKS COSTS) IS GOING TO COST AT LEAST POUNDS 24 MILLION IN 1972/73 OF WHICH POUNDS 14.5 MILLION IS ESTIMATED TO BE LOCAL COSTS, THE MAIN REASON FOR THE INCREASE OVER 1971/72 IS AN INCREASE IN NUMBERS OF ARMY PERSONNEL IN VARIOUS UNITS ALTHOUGH THE MUMBER OF UNITS
REMAINS UNCHANGED,
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