SECRET
UK JYES A
ANNEX A TO COS 1010/756 (Continued)
This would have the advantage, from Hong Kong's point of view,
of avoiding too sudden an increase in the cost to them of a
reduced force.
Questions for consideration
8.
Ministers are, therefore, asked whether they agree that a
study should now be made with Hong Kong Officials of the
implications of a garrison costing about £35M, on the basis that
such a garrison might form an element of a compromise agreement
with Hong Kong.
9.
But, whether such a garrison were acceptable or not, there
will still be a gap between Ministers' desire that Hong Kong
should pay three-quarters of the cost and the Governor's figure
of £17M, which would be about half the cost of a £35M garrison
and rather less than half the cost of the £40M garrison.
10.
The first question therefore is do Ministers consider
that, if we do not succeed in getting Hong Kong to bear three-
quarters of the cost an attempt should be made to bridge the gap
from both ends? There are two possible ways of bridging the
gap:
a.
Lo increase both the UK and llong Kong offers, c.
to one-third and two-thirds of the cost (12M and £23M
respectively for a £35M force, or £13M and £27M for a
£40M force) or;
A -- 5
UR EYES A