SECRET
GRS 250
IMMEDIATE
CYPHER CAT/A
FM HONG KONG 30112ØZ
SECRET
IVCO IN
9. 51
TOP COPI
3 00CT 1975
Akkidi
TO IMMEDIATE F C O TELEGRAM NO 1090 OF 30 OCTOBER.
MIPT.
MINUTE IS AS FOLLOWS:
LAS-
REF.
(340
NEXT
REF.
1. UNOFFICIALS ARE PREPARED TO SUPPORT THE INCREASE IN HONG KONG'S CONTRIBUTION TO DEFENCE COSTS I SUGGESTED TO YOU YESTERDAY, NAMELY:-
341
1976/77 1977/78
50%
1978/79
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 COINCIDE WITH OR BE VERY
CLOSELY RELATED TO THE INCREASE TO 62.5% AND
(B) VACANT POSSESSION OF VICTORIA BARRACKS WILL COINCIDE WITH OR
BE VERY CLOSELY RELATED TO THE INCREASE TO 75%.
2. UNOFFICIALS TOOK THE VIEW THAT THEY COULD ONLY PRESENT THE
TWO STAGES OF THIS VERY SUBSTANTIAL INCREASE TO THE PUBLIC IF
THEY WERE CLOSELY RELATED TO THE RECOVERY OF TANGIBLE CAPITAL
ASSETS. THEY BELIEVE THAT PROVIDED THERE WERE SUFFICIENT GOOD-
WILL AND DRIVE THE VACANT POSSESSION REQUIRED COULD BE GIVEN
WITHIN THE YEARS PROPOSED FOR THE TWO INCREASES, THAT IS TO SAY 1977/78 AND 1978/79.
3. I ACCEPTED THAT THIS COUNTER PROPOSAL HAD VERY GREAT LOCAL PRESENTATIONAL AND FINANCIAL MERIT, BUT THAT ITS FEASIBILITY COULD ONLY BE CONSIDERED IN THE LIGHT OF THE REPORT OF A QUALIFIED WORKING PARTY.
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