TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 99

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Mr. Laird

At a meeting in Sir L. Monson's office on 5 November it was agreed that we should support the Governor's reduced offer of £7 million per annum as Hong Kong's post-1971 defence contribution in our forthcoming dis- cussions with the Ministry of Defence, Ministry of Public Building and Works and the Treasury. I was instructed to prepare a brief for use at these discussions.

The

2. Since the meeting in question we have received the views of the Ministry of Defence and the Ministry of Public Building and Works on the Governor's offer. Ministry of Defence suggests that the Governor should attend the discussions and on balance I feel that it would be as well if he did so. If this course is adopted, then it will be necessary for us to have a pre- liminary meeting with the Governor to clarify any points of doubt arising out of his letter of 17 October and to agree upon the line to take at the discussions. In effect this would mean agreeing our brief in draft with the Governor.

The

3. I attach a draft brief for consideration. draft takes account of the views expressed by the Ministry of Defence but it does not cover the points raised by the Ministry of Public Building and Works since these are points of clarification which can only be answered by the Governor. If the draft brief has, in fact, to be cleared with the Governor then I suggest the omission from it of paragraph 12 (vi).

4.

I understand that Sir L. Monson has already mentioned this subject to the Governor and that the latter would prefer to leave any discussions until he comes up to London for other discussions on 23 November. It will therefore be as well to agree a date as soon as possible with the Governor, the Ministry of Defence, the Ministry of Public Building and Works and the Treasury for the discussions on the Defence contribution.

A. W. Gaminara

12 November, 1970.