TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 133

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Reference.

Copy to each

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Mr Urwick (Defence Department)

Mr McEntee (Commonwealth Co-Ordination Department)

Mr Philipps (Financial Policy and Aid Department)

RECEIVED UNi REGISTRY NO.51

Mr Cromartie (Aviation & Telecommunications Department)

HONG KONG DEFENCE CONTRIBUTION

1.

HKK 10/9

We are at the moment in the course of negotiating a new defence contribution agreement with the Hong Kong Government to replace the existing agreement which was negotiated (after much difficulty) in 1966 and which expires at the end of this month. It is envisaged that the new agreement will cover a period of five years.

2. The defence contribution has always been a sensitive issue in our relations with Hong Kong and the current negotiations have reached a stage where the unofficial members of the Governor's Executive Council have expressed their opposition to anything more than a token contribution. Their views are set out in the form of representations to H.M.G. which are contained in Hong Kong telegram No. 134 (copy attached). The Governor has forwarded his comments in Hong Kong telegram No. 144 (copy also attached).

3. It is now necessary for us to prepare a reply to these representations in conjunction with the Ministry of Defence and the Treasury and consultation with those departments is in train.

4. Meanwhile, we are seeking (in this minute) the views of certain other F.C.0. departments on a number of matters referred to by the unofficial members in their representations and on which the departments concerned may have information which will help in preparing a reply to those representations.

5. The views of departments are sought, as shown below, on individual paragraphs of the representations;

but. departments are of course free to comment on any part of the representations:

S

paras 5 (first sentence) and 6 - Defence &

para 7

para 8

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Commonwealth Co-Ordination

Departments

- Defence and Financial

Policy & Aid

Departments

Financial Policy & Aid Department

/para 9