SCOR
UK EVOS
unacceptable to public opinion in Hong Kong, which is already
resentful of other policies imposed by HMG, g. on the death
penalty.
Even a contribution of £17M might be acceptable only
if it was seen that the maximum economies had been obtained.
This might mean cutting total costs below £40M. The Governor
accepts that Hong Kong's contribution should be adjusted annually
for changes in pay and prices.
Courses open
6. The Governor's advice leaves four courses open:
a. To plan for the reduced garrison costing £40M and,
despite the Governor's advice, to continue to press long
Kong to contribute 75% of the cost, i.c. £30M. This
would conform with the currently assessed minimum defence
requirement to meet the full commitment and with Ministers'
preferred option. But it would be likely to be rejected
by Hong Kong's Finance Committee, a wholly unofficial
body. To override the self-supporting llong Kong, Government
in a financial matter would be without constitutional
precedent and could put our interests in Hong Kong under
severe strain.
b. To accept a Hong Kong contribution of £17M a year,
linked to the minimum defence assessment of £40M. This
would however mean a llong Kong contribution of little more
than 40%. It would also mean that £23M instead of the
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