TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 62

SECRET

and it was only ter further and prolonged

negotiations that they reluctantly offered to recommend

to the Legislative Council a "voluntary token"

contribution of £7 million per annum for 7 years.

4. The Governor now considers that if there is to be

دا

any hope of reaching agreement HMG will have to come

down from the figure of £8.5 million

million; He thinks he

could probably negotiate a settlement based on a

contribution of £7.5 million per annum for 7 years

(details at Annex)

nex)).

5. The following options are open/ to us

6.

(a) To stand out for £8.5 million per annum

(6)

for 5 years.

To autherise the Governor to attempt to

negotiate a settlement at a figure

between £7.5 million and £8.5 million

per annum (preferably for 5 years). A possible scheme

(c) To adopt the Governor's suggestion of

an average of £7.5 million per annum for

7 years.

(a) To accept the offer of the Unofficial

Members of the Executive Council (£7

million per annum for 7 years).

In the Governor's opinion (a) and (b) and

possibly (c) will involve the exercise of the

reserved powers under the Royal Instructions (use of

the Governor's original and casting vote in the

Legislative Council to obtain an official majority

for the necessary Appropriation Bill) or the Letters

Patent (power of legislation by Order in Council).

/The

in Annes II.

SECRET

NOTHING TO BE WRITTEN IN THIS MARGIN