TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 90

(118281) Dd. 391599 1,500M 2/69 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET

Registry No.

HKK 10/9 DRAFT LETTER

SECURITY CLASSIFICATION

KƏN XİXIX

Secret.

XXXXXX

Reartcatx Mucharifetx

PRIVACY MARKING

To:-

E. H. Gwynn, Esq., CB.,

Ministry of Defence, Main Building,

Whitehall,

Type 1 +

From

Sir L. Monson

Telephone No. & Ext.

Department

HK Defence Courbrid

S.. 1.

.In Confidence

Would you please refer

to

your

You af. JUS (F) 153/1

Copies to:

R. Gedling, Esq. H.M. Treasury

E.H.A. Stretton,

Esq., Ministry of Public Building and Works

(60%

The

on

fresent contribution

by his schoulctions)

letter of 18 May

I have now had a reply from the Governor to the

letter of which I enclosed a copy in my letter to you

of 11 June.

Although a considerable amount of work has been done on this exercise in Hong Kong the Governor says that there are so many imponderables in the available data (particularly as regards capital costs) that they have been unable to arrive at any logical total figure

for their contribution which can be based on the cost

of the Garrison. He has, therefore, suggested a figure

which he thinks he may be able to put over locally

Thes without regard to any other considerations. figure is £8m. per annum for the period of a five year agreement; of this, a maximum of £2m. per annum would, in the Governor's words "be earmarked for non-recurrent

capital works, these works to remain the property of the Hong Kong Government and to be selected from works which are agreed by this Government to be of potential value to Hong Kong if no longer needed for use by the Services."

The Governor has also suggested that the arrange-

Stable ment should be considered to be a basically suitable

one running for five years and subject to review only if the Garrison is increased or decreased by the equivalent of two (or more) major Army units.

These are the Governor's very tentative and

He suphasizes that hey are personal proposals based on a Garrison at the level of 73 major units and he has emphasised that he is not at all sure that he can get such a large increase

accepted locally.

It seems to me that this is very much a matter in which we shall have to rely on the Governor's

judgment.

He will have the difficult task of

/ persuading

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