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Registry No.
SECURITY CLASSIFICATION
SECRET
DRAFT
SUBMISSION
Type 1 +
To:-
Top Secret.
Secret.
Confidential.
Restricted. Unclassified.
Mr Logan
Mr Wilford
Sir L Monson
The Private Secretary
PRIVACY MARKING
..In Confidence
cc Mr Daunt
From
My Laird
Telephone No. & Ext.
Department
A
HONG KONG DEFENCE CONTRIBUTION
PROBLEM
1. It is proving extremely difficult to
reach agreement on the size of the defence
contribution from Hong Kong over the next few
years.
BACKGROUND
2. Ministers agreed in February that if the
Governor were able to negotiate with his Exectuive
and Legislative Councils an annual defence
contribution of £8.5 million for the next 5 years
such a contribution subject to certain conditions
would be accepted by HMG. Ministers also decided
erment
Foiled to sieme ag
that 11 the overner/ver
and Preally 6 these proposals
should be re-submitted to them.
the matter
3. After long and difficult negotiations the
Governor has been unable to persuade the Unofficial
Members of the Executive Council to go beyond an
offer to recommend to the Legislative Council a
contribution of £7 million per annum for 7 years.
The Governor thinks however that he could probably
negotiate a settlement based on a contribution
of £7.5 million per annum for 7 years.
SECRET
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