TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 146

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POP COM

SECRET

IMMEDIATE

CYPHER/CAT A

(HK K10/9)

FM FCO 171040Z

SECRET

TO IMMEDIATE GOVERNOR HONGKONG TELEGRAM NO. 143 OF 17 FEBRUARY.

YOUR TELNO. 85 AND MY TELNO 129.

LAFT

REF.

2)

DEFENCE CONTRIBUTION.

NEK

REF.

22

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1. YOUR PARAGRAPHS 8 AND 11, THERE IS OF COURSE A DANGER THAT UNOFFICIAL MEMBERS WILL REGARD THE FIGURE OF £8.5 MILLION AS A MAXIMUM CONTRIBUTION CAPABLE OF DOWNWARD NEGOTIATION. THIS IS NOT THE CASE. MINISTERIAL APPROVAL FOR THIS FIGURE WAS SECURED ON THE CLEAR PREMISE THAT THIS FIGURE, ALTHOUGH THE MAXIMUM THAT YOU COULD HOPE TO NEGOTIATE LOCALLY, WAS AT THE SAME TIME THE MINIMUM THAT WOULD BE ACCEPTABLE TO HMG. IT IS THEREFORE IMPORTANT THAT WHEN YOU DISCLOSE THE CONTENTS OF FCO TELEGRAM NO 113 YOU MAKE IT CLEAR THAT HMG HAD HOPED FOR A SUBSTANTIALLY LARGER CONTRIBUTION, PARTICULARLY HAVING REGARD TO THE HEALTHY STATE OF THE COLONY'S FINANCES, BUT THAT TAKING INTO ACCOUNT THE HEAVY FUTURE FINANCIAL COMMITMENTS FACING HONGKONG, HMG WERE READY TO ACCEPT £8.5 MILLION AS THE VERY MINIMUM CONTRIBUTION TO WHICH THEY COULD REASONABLY AGREE, THIS IS PARTICULARLY THE CASE SINCE (DESPITE THE FACT THAT THE NEW AGREEMENT WOULD BE FOR FIVE YEARS) SUCH A CONTRIBUTION WOULD DO NO MORE THAN RESTORE THE SITUATION (AS REGARDS THE PROPORTION OF TOTAL COSTS WHICH IT WOULD REPRESENT) WHICH OBTAINED WHEN THE CURRENT CONTRIBUTION WAS NEGOTIATED IN 1966. MOREOVER A VERY SUBSTANTIAL PROPORTION OF THE EXPENDITURE WOULD BE LOCAL EXPENDITURE OF DIRECT AND LASTING BENEFIT TO HONGKONG.

12. YOUR PARA 10.

Cohued to M.O.D. (P.D. Naime)

Kap

Batish

SECRET