339
GRS 750
IMMEDIATE
CYPHER CAT/A
FM HONG KONG 300436Z
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REGISTRY NO. 51
REF.
OCTIONS
340
AXKIoli
TO IMMEDIATE F C O TELEGRAM NO 1086 OF 30 OCTOBER.
DEFENCE COSTS.
I UNDERSTAND THAT MR RODGERS HAS KEPT YOU IN TOUCH WITH THE
COURSE OF HIS DISCUSSIONS, BUT I SHOULD LIKE TO MAKE THIS
DIRECT REPORT.
2. AS YOU KNOW IT HAS ALWAYS BEEN MY VIEW THAT A 50:50 SPLIT, WHICH IN ITSELF WOULD INVOLVE DOUBLING HONG KONG'S CONTRIBUTION IN ONE YEAR, WAS THE MOST THAT COULD BE ACCEPTABLE IN POLITICAL AND BUDGETARY TERMS HERE IN THE PRESENT STATE OF THE ECONOMY
AND BUDGET.
3. OVER THE PAST MONTHS I HAVE HAD A SERIES OF MEETINGS WITH UNOFFICIALS EITHER ALL TOGETHER OR IN GROUPS, AND THOUGHT I HAD SECURED GENERAL ACCEPTANCE OF 50:50 IN 1976/77 AT LEAST, AND I WAS FAIRLY CONFIDENT THEY COULD BE BROUGHT TO AGREE A PROGRESSIVE INCREASE TO 75% OVER A FEW YEARS. ALL THIS ON THE BASIS OF A GARRISON OF 4 1/3.
4. BUT THERE HAS BEEN A BREAK IN TREND OF UNOFFICIALS'S OPINION.
AT A MEETING WITH ALL OF THEM JUST BEFORE MR RODGERS' ARRIVAL
I LEFT CONFIDENT THAT THERE WOULD PROVE TO BE SUPPORT FOR
PROGRESSION FROM 50%. BUT AFTER I MYSELF AND OTHER OFFICIALS
HAD. LEFT PANDEMONIUM BROKE OUT AND THE MOST THEY COULD AGREE ON
WAS A GRADUATED APPROACH TO 50:50 OVER A PERIOD OF YEARS.
15.
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