SECRET
H.M. MINISTER OF STATE
Unofficials are prepared to support
the increase in Hong Kong's contribution to defence
costs I suggested to you yesterday, namely:-
1976/77
1977/78
1978/79
50%
62.5%
75%
and 75% thereafter for the currency of the
agreement which should be for as long as
possible, preferably 10 but not less than
7 years
provided
a satisfactory time schedule for the release
of MOD land (including reprovisioning by
the Hong Kong Government where appropriate) is
agreed, but on the understanding that:
(a)
vacant possession of Kai Tak will co-
incide with or be very closely related
to the increase to 62.5%; and
(b)
vacant possession of Victoria Barracks
will co-incide with or be closely
OUGD
2.
related to the increase to 75%.
Unofficials took the view that they could
only present the two stages of this very substantial
increase to the public if they were theives closely
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