TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 159

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Nor have they suggested that the amount of Hong

Kong's contribution should be fixed according

to any specific formula. Whatever figure may

be agreed must however be based on some assess-

ments of the appropriate amount, each for their

own particular reasons, by both Hong Kong and

HMG.

The comparative figures in my earlier

message were included simply to illustrate that

HMG were not seeking a contribution from Hong

Kong any greater than previous contributions,

in terms of the total cost of the Forces or of

Hong Kong's estimated revenue.

3. I welcome your assurance that a

contribution should be made and I certainly

agree that it should be one that the Colony can

afford. I must however say that even having

regard to the Colony's other financial

commitments I find it very difficult to accept

that Hong Kong cannot afford a substantially

increased contribution. At the same time I

gladly assure you that if during the period of

the new agreement the economy of Hong Kong were

to suffer such a serious adverse change that the

continued payment of a contribution of £8.5 million

could be shown to be an unreasonable burden

on the Colony's finances, HMG would always be

willing to consider any representations that

Hong Kong might wish to make on the matter.

Copies to:

MR A F THORPE

F1(AIR) 2 MOD

MR RJ SMITH DOE

LAMBETH BRIDGE HOUSE

MR P D NAIRNE MOI

MR R GEDLING EDLING TREASURY

MR E STRETTON DOE

LAMBETH BRIDGE HOUSE

MR F H GWYNN MOD

NOTHING TO BE WRITTEN IN THIS MARGIN

2.

SECRET

(8430) Dd,033246 600m 9/66 G.W.B.Ltd. Gp.963

14.