TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 68

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Mr Wilford

Sir L Monson

HONG KONG DEFENCE CONTRIBUTION

1. We have consulted Financial Policy and Aid Department and

Aviation and Telecommunications Department about the reply to

Hong Kong telegrams nos. 225 and 226. The attached draft,

subject to a few later amendments, was agreed at a meeting we

had with the Treasury and the MOD yesterday (it was based in

part on views sent to us earlier by those 2 departments).

Our telegrams nos. 235 and 236 are attached for reference.

There is no need, it is suggested, to consult Ministers about

the attached draft. We think the telegram should go off today

in case the Unofficial Members raise the matter after the

meeting of the Executive Council on Tuesday 13 April.

2. Much more could be said on most of the points raised by

the Governor (for instance, the reasons why HMG budgeted for a

surplus in recent years compared with the reasons for the recent surpluses. in Hong Kong) but it was felt that nothing would be

gained by doing this. We want to avoid being drawn into an argument with the Governor (or Sir J Cowperthwaite).

Even with

the support of the Governor it is clearly going to be most

difficult to reach agreement with the Unofficial Members.

8 April 1971

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Hong Kong Department

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