TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 40

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PRIORITY

CYPHER/CAT A

FM HONG KONG

1905302

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TO PRIORITY F.C.O. TELEGRAM NO. 266 OF 19TH APRIL 1971.

PERSONAL FOR MONSON FROM GOVERNOR.

LAST

REF.

YOUR TELEGRAM NO. 280 TO ME.

MEY

REF.

59 าา

DEFENCE CONTRIBUTION,

ALL I KNOW FOR CERTAIN IS THAT A NUMBER OF UNOFFICIAL MEMBERS,

PERHAPS A MAJORITY, HAVE COME TO THE VIEW THAT MATTERS WOULD

BE EASED IF THE PERIOD OF THE AGREEMENT COULD BE STRETCHED TO

7 YEARS.

2. I HAVE BEEN CONSIDERING THIS POSSIBILITY ALSO SINCE I

TELEGRAPHED LAST, AND IT SEEMS THAT THERE MAY INDEED BE THE

GERM OF A SOLUTION IN IT, HAVING REGARD TO THE FOLLOWING FACTORS-

(A) COSTS DURING THE NEXT FEW YEARS ARE INFLATED BY THE

CONSIDERABLE CAPITAL WORKS PROGRAMME, BUT I UNDER-

STAND FROM CBF THAT ONCE THIS PROGRAMME IS COMPLETED

PROVISION WILL BE, BROADLY SPEAKING, SUFFICIENT FOR A GARRISON OF 6 2/3 MAJOR UNITS AND THAT, ALTHOUGH A

NEED FOR ADDITIONAL WORKS DE ONE KIND OR ANOTHER WILL NATURALLY BE LIKELY TO CROP UP FROM TIMS, TO TIME MAJOR EXPENDITURE ON CAPITAL WORKS SHOULD THERE-

AFTER FALL OFF.

(B)

RECEIVED IN REGISTRY No.51 2 GAPR 1971

ALTHOUGH CBF IS ADVISED THAT £17 MILLION CAN DE SPENT WITHIN 6 YEARS ON CAPITAL WORKS, WE OURSELVES HAVE SOME DOUETS THAT MONEY CAN BE SPENT SO FAST, HAVING REGARD TO THE CURRENT PRESSURE ON THE CAPACITY OF THE BUILDING, ETC., INDUSTRY HERE. IN ANY CASE, UNDER THIS IDEA, IT WOULD NOT MATTER (SEC BELOW) IF THE MONEY WAS SPENT

A LITTLE FASTER THAN WE THINK LIKELY TO BE POSSIBLE.

/ 3. THE IDEA

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