SEJA
UK EYES A
This wand of course we only just proposed garrison.
over 50% of the cost of A
be brought to pay in 1976/77 (the first year of a successor
agreement) is £17m. His view is that the major social programmes
now in hand, at a time of recession in the Hong Kong economy,
make it impossible to meet any more greatly increased defence
indicate in direnewing with Mr Ardges in Agen bill. The Governor did however (agree) that it might be possible
to negotiate a graduated arrangement providing for a steadily
a prind of yea increasing Hong Kong contribution rising from one half to three
cult the 14th Gr! quarters over seven years. It has been agreed that the successor
agreement will separately make provision for inflation. Summary
4,
alimenting
·
new
size there the cost It has not proved possible to reduce the cost of the essential
garrison to a point where a £17m Hong Kong contribution would
amount to three-quarters; and the Governor remains convinced that
£17m is the maximum that Hong Kong can be brought to pay in
1976/77. There is no constitutional pressure that could override redmed sine if the go..im means for the the Hong Kong Govt on this issue.) But the gap has been bridged to
the extent that it might now be possible on the basis of the
further reduced garrison to reach agreement on Hong Kong paying
at least
half
one ahir at the outset of a new agreement, rising to three-quarters
Ex 2.
and-UK-
at the end his would be the minimum requiroment, and -UK-
negotiators would naturally aim at securing the most advantageous“
arrensements in respect of the period and pace of graduation.— I can't my wothegames to
Do Ministers therefore agree:-
(a)
that the
Pangraph 2 Davor A
reduced gamison disented at
should be used as the basis of
the lost- Sharing negotiation;
that the
tactics should be to press for a graduated Hong Kong Contubation rising from one half to
half to three quarters over 5 years, bing prepared to concede 7 years if necesary to
an
agreement,
LICLYES A