TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 133

SECRET

5 a

6.

THE MAKING OF THIS RECOMMENDATION IS SUBJECT TO TWO PROVISOS.

THE FIRST IS THAT, OUT OF THE TOTAL SUM TO BE CONTRIBUTED BY

HONG KONG

(A) A SUM OF NOT LESS THAT £17 MILLION IS TO BE SPENT ON CAPITAL WORKS IN HONG KONG SEMICOLON AND IN ADDITION

(B) A SUM OF NOT LESS THAT £15.4 MILLION (£2.2 MILLION A YEAR) IS TO BE SPENT ON MAINTENANCE IN HONG KONG, THIS SUM TO REPRESENT HONG KONG'S MAXIMUM CONTRIBUTION FOR THE PERIOD TOWARDS MAINTEN- ANCE COSTS, ANY DEFICIT TO BE MET BY U.K. FUNDS.

7.

THE SECOND PROVISO IS THAT IF, DURING THE PERIOD OF THE AGREEMENT, THE ECONOMY OF HONG KONG WERE TO SUFFER SUCH A SERIOUS ADVERSE CHANGE THAT THE CONTINUED PAYMENT OF A CONTRIBUTION OF £7 MILLION PER ANNUM COULD BE SHOWN TO BE AN UNREASONABLE BURDEN ON THE COLONY'S FINANCES, HMG WOULD BE WILLING TO REDUCE THE CONTRIBUTION.'' ENDS

TRENCH

FILES HKD

FED

DEFENCE D

FRAD

A & T D

COD

PS

PS/PUS

SIR L MONSON

SIR S TOMLINSON

MR BOTTOMLEY

MR WILFORD

MR D.A.SCOTT IR ROSE

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COPIES TO:

MR D.J.J.BRACK TREASURY

MR A.F. THORPE 71(AIR)2 MOD MR R.J.SMITH DOE LAMBETH HSE

HR P.D. NAIRNE MOD

MR R.GEDLING TREASURY

MR E.STRETTON DOF LAMBETH B.H. MR F.H.GWYNN MOD