SECRET U.K. EYES 'A'
CELLOR OF
THE EXCHEQUER
CH/EX. REF. NO.
COPY NO.
5
75
38
OF 20 COPIES 37)
Treasury Chambers, Parliament Street, SWIP 3AG
01-930 1234
30th October, 1975
u Disney
HONG KONG DEFENCE CONTRIBUTION
HKLOD 31 Mw
31/x
31/x
The Secretary of State for Defence sent the Chancellor a 33 copy of his minute of 29th October to the Prime Minister.
The Chancellor is quite content for the Minister of State to be authorised to proceed as the Secretary of State suggests, provided that:-
(a)
(b)
(c)
there is a reasonable expectation that a settlement could be reached on this basis;
the inflator arrangements would be applied to ensure that the Hong Kong contributions kept pace with rising prices;
further study should be given to means of reducing the costs of the garrison with a view to reducing the financial burden on both countries.
I am sending copies of this letter to the Private Secretaries of the other members of OPD and to Chris Brearley (Sir John Hunt's office).
A.J. Cragg, Esq.,
Private Secretary to the
Secretary of State for Defence
Ministry of Defence
Main Building
Whitehall
S.W.1
(S.A. ROBSON)
SECRET - U.K. EYES 'A'