CONFIDENTIAL
CONFIDENTIAL
3.
state broad implications of garr-sons costing e.g.
35, 30, 25 million at September 1974 prices.
(c)
The object of this is to try to identify what
options might be open in case sufficient money cannot be
found by the two Governments to maintain a gamison of
5-2/3 major units.
Fourth Stage.
(a)
Hong Kong's Budgetary Situation.
To establish the size of the present Hong Kong
contribution at September 1974 prices.
.(b)
Might Hong Kong's contribution be a graduated
one?
(c)
Should the contribution be expressed in
sterling or Hong Kong dollars or both?
(a)
Hong Kong's capacity to pay an increased
contribution is clearly vital to the discussions. It
will therefore be necessary for the general effect of a
greatly increased contribution on Hong Kong's budget to be
examined.
(e)
It is proposed that this should be done by the
Financial Secretary in a discussion with Mr. J. Hansford.
Fifth Stage.
Form of. Inflator"
(a)
The agreement-must contain a clause providing
for cost inflation during the currency of the new
CONFIDENTIAL
/agreement.....