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flames at (a) Rooper's opening this in Nov (para 2) and (8) Pusser Rems
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For discussion
on 2nd December 1975
of 1/4
Copy No
XCS(75)6 3.1.0f 40
of
C
MEMORANDUM FOR EXECUTIVE COUNCIL
A
B
Introduction
DEFENCE COSTS AGREEMENT
- 9 DEC 1975
HKKIO
On 28th October 1975 the Minister of State for Defence, the Rt Hon William Rodgers, MP, addressed the Executive Council and the Finance Committee of the Legislative Council on the UK Govern- ment's position in respect of the Defence Costs Agreement. A copy of his opening statement is at Annex A. The Minister indicated that the British Government considered that a garrison of 4 1/3rd major units, 5 patrol craft and 8 helicopters was militarily adequate and that it will continue to be possible to reinforce Hong Kong from UK. He stated that the British Government was seeking a contribution from the Hong Kong Government of 75% of the cost over a 5 year period and that the UK's share should be the minimum compatible with its political objectives. Honourable Members had an opportunity to comment on the Minister's proposals and after this the Governor made a statement on the Hong Kong Government's position, a copy of which is at Annex B.
Course of Negotiations (28th October 1st November)
2
During the course of the negotiations between the Governor and Mr Rodgers and their respective teams of officials, Mr Rodgers indicated that he was prepared to seek further instructions from the Cabinet on the basis that a scheme of graduated contributions by the Hong Kong Government should be considered. Mr Rodgers put forward a proposal that the following proportion of costs should be met by Hong Kong:
1976/77
65%
1977/78
70%
1978/79
75%
1979/80
1980/81
85% 75% 80%
Following discussion with the group of Unofficials selected by UMELCO, to advise the Governor during the negotiations, the Governor informed the Minister on 30th October that:
(a) this proposal was unacceptable;
(b) the Governor was prepared to recommend to Unofficials the
following contribution by Hong Kong:
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