SECRET
чимите
114
122 B
(125)
120)
2012
131
A
Sir L Ronson .
Mr Loyan
Mr Renick
HONG KONG
16.
DEFENCE CONTRIBUTION
شمه
afforord
ince
to issue
JG
1. The attached memorandum by the Secretary of State was
considered by the Defence and Oversea Policy Committee at its
meeting on 23 July.
2. In paragraph 8 of the memorandum the Secretary of State
had recommended that the Governor of Hong Kong be authorised
to attempt to settle the issue of the defence contribution on
the basis of Annex I to the memorandum (ie on terms which had
been advocated by the Governor).
However, the Committee
decided that the Governor should be instructed to endeavour to
secure settlement on the basis of Annex II to the memorandum.
FCO telegram No 553 instructed the Governor to proceed
accordingly.
3. In his reply (Hong Kong telegram No 528) the Governor
expressed disappointment that his recommendations had been
rejected and asked for clarification of certain points before
he proceeded to carry out the instructions sent to him.
Before we had had time to reply to this telegram, the Governor sent a further telegram (Hong Kong telegram No 549) from which
it appears that he is most reluctant to act on the Defence
and Oversea Policy Committee's decision and is still seeking
to persuade Ministers to adopt his own recommendations.
4.
The Governor has made it quite clear:
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