SECRET ÜK EYES A
Kong, representatives advanced no persuasive argument, apart from Hong Kong's own economic problems, which coula in itself lead UK Ministers readily to reconsider their views. A to Hong Kong contribution, the Governor stuck even more firmly than before to his figure of £17M, but there were signs that graduation leading to payment of a higher figure in later years would be conceueu in negotiation. As to the third factor in the equation, the total cost una consequently the size of the garrison, there was some discussion, without prejudice, of the implications of garrisons smaller than the "reduced" garrison costing £40M a year and you will see from the report that the Governor asked that a study should be conducted of a garrison costing about £35M, with a view to a 50/50 split of the costs and Hong kong paying £17M or so.
5. In the light of the report i now seek your approval that the work described in its paragraph 25 should continue and that preparation of the note referred to in paragraph 24 should proceed. As regards timing, the report refers (paragraph 20) to the Governor's view that May is the right time for him to seek agree- ment with his unofficial colleagues. This implies Ministerial decisions here and conclusion of negotiations with the Governor by April and, in preparation for this, as early a start as reasonable in the joint examination of smaller garrisons, if the Chiefs of Staff and Ministers so approve. We would aim therefore to have the note referred to in paragraph 24 ready to go to the Chiefs of Staff and Ministers early in February.
говищет
J.D.BRYARS
AUS(CS)
24 January 1975
SECRES
UK EYES A