SECRET
7. We passed these estimates on to the
Governor to enable him and his officials to
work out a figure which Hong Kong could
reasonably propose as their contribution under
the new agreement.
8. In July 1970 the Govenor wrote to us
explaining that there were so many imponder-
ables in the estimates provided by the Ministry
of Defence that he and his advisers had
been unable to arrive at any logical total
figure for a Hong Kong contribution based
on the cost of the garrison.
In order to
resolve the impasse he therefore decided to
offer a figure which, in his own words "I
may - and I repeat may. be able to put
over locally without regard to any other
considerations". The figure that he
waste million pounds (an increase of
offered wa
some 60% on the current contribution of
Hwhich was
was based on the supposition that the garrison would include 73 rds major
Irmy
5 million pounds) per annum: this sum/would
be Hong Kong 's total annual contribution
to the costs of the garrison over the period
of a five year agreement. It would include
an element of up to million pounds per ú
annum which would be earmarked for capital works
which were to remain the property of the
Hong Kong Government and to be selected
from works which were agreed by that
Government to be potential value to Hong
Kong if no longer needed for use by the
units)
Services.
SECRET
/11.
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