TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 37

SECRET

return

and we can see no hope of any alternative proposal being

accepted here which gives HMG any noticeably different to.

The only alternative starter as we see it is some escalating

programme over the five years (or possibly seven) so as to provide say 243M over five years (or say £61M over seven years).

This would permit a lower figure than £8.5M for 1971/72 and thus

avoid the immediate increase of £3.5M if that is mainly what is

worrying the unofficials.

5. You have previously referred to the need to avoid having

to deal annually with public excitement at learning that each

year's contribution is higher than the year before but in view of your proposal in Telegram 266 we assume this is no longer a

bar to an escalating programme.

FORET