TNAG-0289-FCO40-325-Departmental-briefs-on-Hong-Kong-1971 — Page 142

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Paragraphs 20 - 23.

We have run into difficulties over the size of the defence contribution for the five year period beginning April 1971. Treasury officials consider that the Colony should pay at least fifty per cent of the total costs (some £12-13 million a year); the Governor on the other hand is of the opinion that something like £7.5 million a year is the most he can persuade the Unofficial Members of the Executive and Legislative Councils to accept. He may be able to obtain their agreement to a slightly larger contribution on the grounds that much of the Hong Kong money would be spent on buildings which would ultimately become the property of Hong Kong. The matter has not yet been

put to Ministers.

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