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q.
!
at present unwilling to contemplate a greater
payment than 60% of a £35M garrison by the eighth
year of a new Agreement, with 40% being paid in the
early years.
th
(a) Cutting the cost of the garrison to a point at which
a Hong Kong contribution of £17M would represent
75%
Such a garrison would cost about £23M, or £27
the Committee were prepared to make the contribution
of about TOM contemplated in their discussion on
Coptember
tu's
In capability would fall. far short
of what is at present seen as the minimum military
requirement: it could amount te ittle more than a
Bendarmeria,
Next steps Timing
9. The Governor's judgment is that the chances of a
successful agreement will be improved if the Councils are
not asked to give formal consideration to the question of
the defence contribution before May, that is after the
forthcoming Budget Debates have been completed. He would
wish to use the interim period to reach agreement with HMG
on the proposals to be put to the Councils and to take further
informal soundings. If this advice is accepted, it will not
be possible to include any substantive reference to the
future level of the Hong Kong contribution in the Defence
White Paper to be published in March.
Questions for consideration.
10. To enable formal negotiations to be opened with the
Hong Kong Government, answers are sought to the following
questions:-
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