TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 5

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Odob

Hong Keng Department

108

31 December, 1970

Hong Kong Defence Centribution

At the end of our inter-departmental meeting en 21 December to discuss the above subject, it was left that we would prepare the draft of a telegram to be sent to the Governor of Hong Kong setting out the position as it emerged frem our meeting. I recordingly attach the draft of such a telegram.

2. There are one or two points in the draft which call for particular cemment:

(1) Paragraph 1 of the draft states that the revised capital works figure of £27 million has Treasury approval in principle. We are not sure whether this is in fact an accurate description

the positiem, although Brack did indicate at our meeting that the Treasury were likely to look upen the figure favourably. But in our view, since we are putting forward this revised figure of works expenditure as the main reason for asking the Governor to increase his offer of 871 million, we must either specifically inform the Governor that the figure has at least the approval in principle of the Treasury, or we must equally specifically make it clear to him that it has not yet received such approval, In the latter event the way will of course be spen Hàs the Governor to make any increase that he is prepared to try and negotiate with his unofficial advisers conditional on such approval being forthcoming. We cannot expect him to give us a categorical under- taking to attempt to negotiate an increased figure en the strength of a works programme which is hypothetical.

(11) For the reasons stated above the word "proposed" has been omitted immediately before the words "new item of married quarters" in paragraph 3 of the telegram although the word did appear in the enclosure to Smith's letter to hemof 23 December.

(111) I should be grateful if, as agreed with him over the tele- phone, Smith would add a few details to paragraphs 3 and 4 of the draft. We feel that the Governor will need to have as much detail as possible of the projects involved as ammunition to use with his unofficial advisers.

A.F. Thorpe, Esq., OBE

Room 0257,

Ministry of Defence.

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