TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 18

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(C) THERE WOULD BE VIREMENT IN CAPITAL WORKS EXPENDITURE AS BETWEEN ONE YEAR AND ANOTHER.

(D) ALL CAPITAL WORKS PAID FOR BY HONG KONG WOULD REVERT TO HONG KONG IF NO LONGER REQUIRED BY HER MAJESTY'S GOVERNMENT.

4. I MUST ACCORDINGLY ASK YOU TO DO YOUR UTMOST TO SECURE THE SUPPORT OF YOUR EXECUTIVE COUNCIL FOR A SOLUTION ON THE ABOVE LINES STRESSING THE POINTS IN PARAGRAPH 1 ABOVE.

5. THIS DECISION WILL COME AS A DISAPPOINTMENT TO YOU. HOWEVER YOU ARE ALREADY FAMILIAR WITH THE MANY ARGUMENTS PREVIOUSLY ADVANCED IN SUPPORT OF HER MAJESTY'S GOVERNMENT'S CASE, AND I MUST LEAVE IT TO YOU TO DECIDE HOW BEST TO SECURE THE COOPERATION OF THE UNOFFICIAL MEMBERS. THE FOLLOWING POINTS ARE PERHAPS WORTH

REITERATING IN YOUR DISCRETION:

(A) POUNDS 8 MILLION REPRESENTS A SMALLER PROPORTION OF THE TOTAL CURRENT COSTS OF THE GARRISON THAN DID THE POUNDS 5 MILLION CONTRIBUTED BY HONG KONG IN 1967/68 AND THE AGREEMENT WOULD RUN FOR A YEAR LONGER THAN DID THE PREVIOUS ONE.

(B) EXCLUDING CAPITAL WORKS (CONTRIBUTION OF POUNDS 15 MILLION OVER 5 YEARS COMPARED WITH POUNDS 2.4 MILLION OVER 4 YEARS) AND ALLOWING FOR MAINTENANCE AND MINOR WORKS (POUNDS 2.2 MILLION ANNUALLY AGAINST POUNDS 0.475) THE CASH CONTRIBUTION TOWARDS RECURRENT COSTS WOULD AVERAGE POUNDS 2.8 MILLION A YEAR AS AGAINST POUNDS 3.925 MILLION UNDER THE PREVIOUS AGREEMENT.

(C) WERE IT NOT FOR THE FUTURE CAPITAL COMMITMENTS FACING HONG KONG AND THE OTHER CONSIDERATIONS RAISED BY THE UNOFFICIAL MEMBERS, HER MAJESTY'S GOVERNMENT WOULD HAVE FELT FULLY JUSTIFIED IN

ASKING FOR A SUBSTANTIALLY LARGER SUM,

6. GRATEFUL FOR REPORT AS SOON AS POSSIBLE ON OUTCOME OF ACTION

ON PARA 4 ABOVE.

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