(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863

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Treasury officials have put forward the tentative idea of a graduated increase in Hong Kong's contribution, which, over, say, a ten-year period would amount to 75% of the whole, but might start below this level and end above it. This would help with Hong Kong's immediate budgetary problem.

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I think the idea of an exploratory visit by officials to Hong Kong is the right next step. I also think we should probably send someone from the FCO to hold the ring.

Reep an eye on the excercise

When the officials have

completed their examination, they will be in a position to make policy recommendations to Ministers.

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Dees.

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