TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 8

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pressure but in our latest letter to the Governor we

have asked him to give serious thought to the possibility of providing in the Agreement for some form of annual adjustment to cover pay and price increases and thus

maintain the real value of the contribution over the

period of the Agreement.

7. Mr. Haddon Cave is not at present familiar with the details of this exercise although we have mentioned

to him the Governor's offer of £8 million.

Hong Kong Department,

6 October, 1970