TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 174

HKK. 10.

SECRET

Soff

with

17

Mr Walford

Mr Logan

Herend.

The Private Secretary

4.R.

HONG KONG DEFENCE CONTRIBUTION

1.

greed

조 5/2

The present agreement on Hong Kong's defence contribution comes to an end next April.

2.

The arrangements proposed for the next five years have been worked out in consultation with the Governor and agreed with the Treasury, the Ministry of Defence and the Department of the Environment. They are embodied in the attached paper which is being submitted simultaneously to Ministers in the other Departments.

3.

It has not been easy to reach this agreement and we can count ourselves fortunate to have secured the support of other Departments. I have no hesitation in recommending the proposals for the approval of the Secretary of State.

4.

If the proposals are approved, the Governor will then have to consult his Executive Council. In order to meet the timetable for the preparation of the Hong Kong annual estimates for 1971/72, he proposes to do this on Tuesday 9 February. He will have a difficult task in persuading his Council to accept the new arrangements. The defence contribution is one of the most sensitive issues in our relations with the Colony. It is most important therefore that we should meet the Governor's deadline if at all possible.

4 February 1971

сс

Eɣania

E O Laird

Hong Kong Department

recommend that the Sofs accept

the

which have been worked out

Mr T Daunt

proposals

Sir L Monson (or)

interiepartmentally.

tre cannot, of course,

sure that the Governor will be able to

persuade

propraed

he will

that

}

his Unofficials to accept what is

but there

succeed.

be

four chance that

It is most important

we get instructions to the Fremor by

SECREThreek

CRET the nocekend.

Kun Wilford 4/2.