TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 58

SECRET

ARGUMENT

4.

It has been agreed with officials from the

Treasury, the Ministry of Defence and the Department

of the Environment to recommend that this question

should now be considered in the Defence and Overseas

Policy Committee (DOPC). and that the Paper for the

Committee from the Foreign and Commonwealth Segretary 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

tfat

Department and also the Treasuries of th.

dification the Colony

on the Colony of a contribution at

this level would be counter-productive and could

well prove costly to us. They have however

argued that in view of the inclination of the

Chinese to haggle it would beja 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.

SECRET

18.

NOTHING TO BE WRITTEN IN THIS MARGIN