GR 489
IMMEDIATE
CYPHER/CAT A
SECRET
RECEIVED IN
REGISTRY Na, 50
TOP COPY
PA
FM HONG KONG 270930Z
27 FEB 1975
SECRET
INICIO
10
TO IMMEDIATE FCO TELNO 178 OF 27 FEBRUARY.
YOUR TEL 139: DEFENCE COSTS.
FOR STUART, HKIOD.
313
LABY
REF.
72
NEXI
REF.
190
I AM CONCERNED AT LACK OF CLARITY ABOUT TERMS OF REFERENCE. UNLESS THESE ARE AGREED BEFORE THE TEAM ARRIVES THERE COULD BE DIFFICULTY. AS I UNDERSTAND IT THE MOD PROPOSAL (YOUR PARA. 3) IS:
(A) ''TO CONSIDER AND REPORT THE FOSSIBLE COMPOSITIONS AND THEIR
SECURITY AND POLITICAL IMPLICATIONS OF A GARRISON COSTING POUNDS
STERLING 35 MILLION AT ESTIMATED '75/76 PRICES
(B) IF ANY PRACTICAL SOLUTIONS WITHIN THIS OR A LOWER FINANCIAL LIMIT ARE RECOMMENDED THE REPORT SHOULD STATE RELATED ACTION, E.G. BY THE ROYAL HONG KONG POLICE, THAT IT WOULD INVOLVE”.
2. THIS IS ALL RIGHT, SUBJECT TO THE FOLLOWING:
(1) PLEASE DEFINE ''ESTIMATED '75/76 PRICES'' HITHERTO WE HAVE
WORKED ON SEPTEMBER 1974 PRICES.
11) I HOPE THERE WILL BE NO MISUNDERSTANDING ABOUT THE FIGURE OF POUNDS, STERLING 35 MILLION. IT EMERGED FROM MY ORIGINAL PROPOSITION THAT HONG KONG COULD PAY UP TO POUNDS STERLING 17 MILLION AND THAT HONG KONG'S CONTRIBUTION MIGHT THUS BE DOUBLED AND HMG'S HALVED. MY VIEW THAT POUNDS STERLING 17 MILLION WAS THE MAXIMUM HONG KONG COULD BE BROUGHT TO PAY IN '76 REMAINS UNCHANGED, AND THE DIFFICULTY OF GETTING AGREEMENT TO IT HAS INCREASED AS THE RECESSION AND ASSOCIATED BUDGETARY PROBLEMS HAVE DEEPENED. NEVERTHELESS I AM
STILL PREPARED TO TRY AND BELIEVE I COULD GET IT. BUT THERE IS NO PROSPECT OF THIS PRODUCING THE MINIMUM GARRISON SO FAR CONSIDERED NECESSARY UNLESS HMG ARE PREPARED TO AGREE THAT THE SPLIT WOULD BE 50/50. 1 MUST MAKE THIS CLEAR BEFORE THE STUDY IS UNDERTAKEN,
SECRET
/ (III) I TAKE IT