Option B
SECRET TUK KA EYES A
SECRET
UK EYES A
A gradual progression from a 50% contribution in the first year (£20M at 1976/77 prices) to a full 75% contribution (£30M at 1976/77 prices) over 5 years. You indicated at OPD that you would not exclude a fall- back position on these lines.
Option C
i
As a last resort, starting from the Governor's assessment that £17M is the most that can be got in the first year, and moving to a full 75% contribution over 5 years as in Option B.
Varieties of Options B and C might involve moving to 75% over 7 years. If driven to Options B or C, we might seek to make it a condition of agreement that the pace of graduation would be advanced if Hong Kong's GNP increased more rapidly than forecast.
We must recognise that these negotiations will be difficult. It follows that, if I am to achieve a favourable settlement, I must have some discretion to negotiate, within options agreed in advance. It would be helpful if I could introduce Options A, B and C without reference to London and seek further guidance only if still unable to secure agreement. When we spoke in July I understood you to accept the need for flexibility and for discretion for me on the spot.
If you can
I am not copying this letter at this stage. personally endorse my negotiating strategy I can then seek any necessary clearance from OPD.
Cepy to:-
PS/S of S
PS/DUS (P)
AUS (GS)
Head of DS 6
نہ بناتے
고!
SECRET
William Rodgers
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EYES A
SECRET UK EYES