TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 7

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(after consultation with the other Departments concerned)

considered the figure to be a reasonable one, the Governor

could put it to his Executive Council at the appropriate

time. If the latter agreed the figure it could then be

put forwarded as an offer by the Hong Kong Government,

thus avoiding any appearance of its being a demand by

Her Majesty's Government. It was agreed that such an

approach seemed sensible and this is in fact the course

which is being adopted.

4.

Accordingly, in June, 1970, we sent the Governor

estimates provided by the Ministry of Defence for the

recurrent and works costs of maintaining the Garrison

post-1971 and asked him to give us a round figure for what

he considered would be both a reasonable contribution for

Hong Kong to make towards these costs and a figure which

he thought he could persuade his unofficial advisers to

accept.

5. In reply the Governor suggested, in July, 1970, the

sum of £8 million per annum (to cover both recurrent and capital costs) which he thought that he might be able to

get accepted locally, although he was by no means sure about

this. The Governor's offer was discussed, in September, with

the Ministry of Defence and the Treasury and as a result of

those discussions we again wrote to him on 2 October. There

the matter now rests.

6. We are under considerable pressure from the Ministry

of Defence and the Treasury to try and persuade the Governor

to increase his offer of £8 million.

We are resisting this /pressure......

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