TNAG-0182-FCO40-218-Defence-contributions-1969 — Page 66

SECRET

"Consideration of where the costs of the garrison should be borne

should be deferred but the Defence Secretary

should arrange

for the best assessment possible to be made of the full cost to us of

the Hong Kong commitment". This costing exercise is apparently

still in progress and we have no information as to when it will be

completed.

7. There the matter has rested. The current defence contribution

agreement does not expire until March 1971 and in the normal course

of events we would not expect to start negotiating a new agreement

until mid-1970.

30 July, 1969

b. 5. Cat

S.

(w. S. Carter)

Hong Kong Department

Copy to: Mr. Sykes, Defence Policy Department.