(118281) Dd. 391599 1,500M 2/69 Hw.
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12/1.45
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PRIVACY MARKING
In Confidence
Department
Item 5.
Record of Discussions with Sir David Trench,
Governor of Hong Kong
November 1969
PRESENT:
Sir Leslie Monson
Sir David Trench
Mr. Wilford
Mr. Sykes (for Item 5)
Mr. Cakter
Mr. Gaminara
inar
Item 5 Defence Matters →→
(a)
Defence Contribution
The Governor considered that negotiation of the
new defence contribution would not be less difficult
would take the view than in 1966. Some unofficials considered that the
necessary contribution should be found towards the maintenance of an adequate garrison; others would be less well disposed and might argue that the loss of some £60 million suffered by Hong Kong as a result
of the devaluation of sterling should be regarded as
offsetting the defence contribution for several years
ahead. He would need to deploy different arguments in "selling" an enhanced contribution in Hong Kong
from those which might be used in presenting it in Whitehall. He hoped that, despite this difficulty, it would be possible to arrive at a figure which the
Hong Kong Government could agree upon as representing
a fair offer by them to meet their share of the costs
and which would be acceptable to HMG. The Governor
considered that the absolute maximum contribution
for which he could obtain acceptance in Hong Kong would be £71⁄2 million per annum of which he hoped some
/ £2 million
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