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the Defence and Overseas Policy Committee (DOPC) and that
the Paper for the Committee from the Foreign and Commonwealth
Secretary should indicate the options open to HMG.
5. The form of the attached draft has been agreed with
other Departments but it has not been possible to obtain
their support at official level for the Governor's revised
proposals.
6.
Although the Ministry of Defence in particular have
been most reluctant to move at all from the figure of
£8.5 million, officials in both that Department and also
the Treasury have recognised the difficulties of imposing
a settlement on the Colony. They have however argued that
in view of the inclination of the Chinese to haggle it would
be a mistake to come down in one step from £8.5 million to
£7.5 million.
7. The Governor for his part thinks that £7.5 million is
the maximum figure he can hope to persuade the Unofficial
Members of his Executive Council to accept. He is much
less certain about the attitude of the Unofficial Members
of the Legislative Council; and he has suggested that it
may be necessary to use the reserved powers to get the necessary legislation through even if the proposals are supported by a majority of the Unofficial Members of Executive
Council.
8. Under the Hong Kong Royal Instructions the Governor is
obliged first to submit a proposal such as a defence
contribution to his Executive Council and he may only act
contrary to the advice given to him by the members of the
/Council
2.
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