GRS 170
IMMEDIATE
CYPHER/CAT A
SECRET
EM FCO 011540Z
RE
- 4 AUG17/0
SECRET.
PERSONAL.
UK EYES ALPHA.
NXK 10/1
TO IMMEDIATE HONG KONG TELNO 594 OF 1 AUGUST.
PERSONAL FOR GOVERNOR.
MIPT.
(204)
1. IN COMING TO THIS DECISION MINISTERS TOOK THE VIEW THAT, BY ANY OBJECTIVE STANDARD, HONG KONG COULD AFFORD A 75% CONTRIBUTION, WHICH THEY ESTIMATE WOULD AMOUNT TO 1% OF THE COLONY'S GDP. THEY
WERE NOT UNMINDFUL OF THE CURRENT RECESSION IN HONG KONG BUT
NOTED THAT THE PROSPECTS FOR THE HONG KONG ECONOMY THEREAFTER
WERE EXPECTED TO BE MORE FAVOURABLE. MINISTERS ALSO NOTED THE LOW
TAXATION RATES APPLICABLE IN HONG KONG.
2. BOTH THESE TELEGRAMS ARE FOR YOUR OWN INFORMATION ONLY AT THIS
STAGE UNTIL WE HAVE HAD AN OPPORTUNITY TO DISCUSS WITH MR
RODGERS HOW HE PROPOSES TO HANDLE THE TALKS (HE IS ON LEAVE UNTIL MID-AUGUST). HE CONSIDERS THE MATTER TO BE OF SOME URGENCY BUT IN
VIEW OF THE LEAVE SEASON AT BOTH ENDS HE CONSIDER THAT THE FIRST HALF OF OCTOBER (IE AFTER THE LABOUR PARTY CONFERENCE) WOULD BE
SUITABLE: AND THAT, AT ALL EVENTS, AN AGREEMENT SHOULD BE CONCLUDED BEFORE THE VISIT OF THE DEFENCE AND EXTERNAL AFFAIRS SUB-COMMITTEE IN NOVEMBER.
CALLAGHAN
FILES
HKIOD (3)
DEF. D
SWPD
PS
PSI LORD GORONWY-ROBERTS SIR.D. WATSON
MR WILFORD
MR SYKES
MR
MALE
MR THOMSON
MR
COPIES Το
ANDREW, AUSS, MOD MR HANSFORD, TREASURY MR BRYARS CABINET OFFICE MR AGGLESTON, PSA.
STAFF DUTY OFFICER. MOD
SECRET