TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 7

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Registry No. HKK 10/9 DEPARTMENT Hong Kong

SECURITY CLASSIFICATION

Top Secret Secret

Confidential

Restricted

Unclassified

SECRET

PRIORITY MARKINGS (Date)

Flash

Immediate Priority Routine

}*

Despatched

Date and time (G.M.T.) telegram should reach addressee(s).

PRIVACY MARKING

In Confidence

[Sec

"Security classification"

-if any

SECRET

En Clair.

[

Privacy_marking -if any

]

Code

Cypher

Draft Telegram to:- The Governor,

Hong Kong

No.

(Date)

And to:-

[Codeword-if any]

Addressed to

telegram ................

And to

repeated for information to

Saving to.

Repeat to:-

THE GOVERNOR, HONG KONG

(date)

Defence Contribution

Saving to:-

Distribution:-

Copies to:-

R.J. Smith,

We have been unable to reach agreement with

Ministry of Defence and Treasury on the basis of

your offer to try and negotiate with your unofficial

advisers an annual Hong Kong contribution of £71⁄2:

million. Both departments concerned consider that

for the following reasons there is every justification

for increasing this figure.

2. In the course of inter-departmental consultations

that we have had since your return to Hong Kong we

have been informed by Ministry of Defence that there

will be a substantial rise in works costs of garrison

over 5 year period beginning 1971/72. This will

Department of the involve an increase in works expenditure to a total

Environment,

Lambeth Bridge

House, SE1.

Mr. Brack,

Treasury.

of £27 million over the period as compared with the

figure of £19 million given in revised Annex B

SECRET

over