File No..

HKIOD

OUTWARD

Department

Drafted by

TELEGRAM

A C STUART

Security Classification

SECRET

Precedence IMMEDIATE

(Block Capitals)

DESKBY 0900 local

Z

Tel. Extn..

FOR

COMMS. DEPT.

(Date).

USE

Despatched

POSTBY

N

(Time).

Z

PREAMBLE

DEDIP

(Time of Origin)

..Z(G.M.T.)

(Restrictive Prefix)....

SECRET

(Caveat

(Security Class.)

Privacy Marking).

0900 local

(Codeword)

(Deskby)

Z

ΤΟ

IMMEDIATE

HONG KONG

Tel. No...

(precedence)

(post)

AND TO (precedence/post)

AND SAVING TO

REPEATED TO (for info).

SAVING TO (for info)

of

Distribution:-

No distribution

Ha IIKIOD

Hd Defence Dept.

Sir D Watson

Mr Thomson

Mr Male

PS/PUS

Copies to :-

[Flag A]

[TEXT]

Strictly Personal for the Governor from Watson. M.i.p.t. Defence Review.

1.

You will see that we have failed to get Ministers to delete from the statement the reference to a smaller garrison with a larger contribution from Hong Kong. The political imperatives in this country

were too strong.

2.

I am afraid this is final. The Secretary of State himself was unconvinced by our arguments (and yours), even though these were backed up by Lord Góronwy-Roberts. His present view is that Hong Kong should face the fact that they can pay more.

3.

You will see that the statement refers to a larger percentage contribution (para. 5 of our telegram no. 1001). The thought was that a larger percentage of

/the cost

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