TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 60

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Parliament might ask a question about it

or try to initiate a debate.

10. It cannot be denied that Hong Kong

could afford to pay a contribution of

£8.5 million per annum (and over a period

of 7 years instead of 5 years an even higher

figure might reasonably be expected).

The

Colony benefits appreciably both economically

and in terms of public confidence from the

presence of the garrison. The realities

of the situation are such however that we Geben

at no ope of

are most unlikely to obtain a contribution

of more than £7.5 million per annum unless

such a contribution is imposed and the

consequences of such a course could be

very serious indeed.

RECOMMENDATION

11. I consider that the Governor's proposals

represent the best terms on which we may

hope to reach a settlement with Hong Kong

without having to impose a contribution on

the Colony. I accordingly recommend that

the attached draft be approved for

consideration at the DOPC meeting planned

for next week.

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(145181) Dd. 737490 750M 1/71 Hw.

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