TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 183

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half the total cost is foreign exchange expenditure.

եւ To avoid creating the atmosphere of crisis which was

+B.

occasioned by the despatch of a Minister to Hong Kong for the

1966 negotiations, Sir David Trench proposed to the previous

Pricinistration that it would be best if, in the light of the

situation as he saw it, he were to assess the maximum sum

which he believed he could persuade his Executive Council and

Legislative Council to accept as a fair contribution;

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and when

then armed with HMG's agreement in principle to this sum, be

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would put the matter to his unofficial advisers,

Also to

avoid too frequent local crises over renegotiation he suggested

that any new agreement should run for five years.

The Hong Kong Proposal

5 The Governor, on the basis of the forecast figures and

taking into account the size of the garrison to be retained in

the Colony, has now offered to try to obtain an increase in the

present rate of contribution from £5m to £8.5m per annum for a

period of five years beginning in 1971/72. He would like to table

next Tuesday this proposal in the Executive Council/enfor very shortly afte

after]

9 February.

6

The Governor he prep red his offer on the basis of

prep-red

Hong Kong paying 50% of the armed forces' foreign exchange Costs

would be

incurred in the Colony: This annual figure is an average in which he allows for a small (3) element of local price

increases on the non-works elements of the garrison's costs.

6. His offer incorporates the following conditions:-

(a) The Hong Kong Government, within its contribution of

mmnwnks and f

Surice 281m, would pay for the cost of maintaining all military

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buildings and installations in the Colony; this cost (ourbewily

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