Page 233

Page 233

to serious doubt.

If the unofficials

voted in favour of a reduction in the

contribution to correspond to the

reduction of the garrison (including naval

and air support) in recent years, the

financial effect for H.M.G. in both the

short and the long term might well be worse

than if the Governor's proposals were

accepted.

Page 233

PRIORITY MARKINGS

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No.

Campbell 18.

IMMEDIATE

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Mr. Melville

Mr.

Mr..

Sir..

Permt. U.S. of S.

Parly. U.S. of S.

Minister of State

Secretary of State

ENCLOSURES

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GOVERNOR, HONG KONG.

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(179)

Your telegram No. 97.

Garrison

This matter will come up for decision on Wednesday,

and we are therefore most grateful for this clear and useful

expression of your wishes.

2. As a matter of tactics we think that acceptance of the

proposal in your paragraph 5 is, at least at the outset,

unlikely, as it involves reversal of previous Ministerial

decision. We propose therefore to suggest to the Secretary

of State that he should press the proposal made in paragraph 6

of Grantham's telegram No. 983 as the way out of the present

deadlock, reverting to your proposal if he is unsuccessful.

We take it that if, as seems unlikely, Ministers accept the

former proposal you would not be embarrassed.

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