TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 64

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The consequences of imposing a contribution

will however be much less serious if, as is

possible with (c), the proposals are

supported by the Executive Council.

7. The Governor has strongly advised that

tribu:

HMG should not impose a gontribution on

Hong Kong without making some further attempt

to reach agreement with the Unofficial

Members. In addition to the danger of

provoking disorders in the Colony (and the

Governor could expect little or no public

Chirono

support on such an issue) the imposition of

contribution/would undoubtedly embitter

relations between Hong Kong and HMG for a

long time to come. I am sure that if at all

possible we must avoid the use of the reserved

powers for this purpose.

8. I accordingly recommend that the Governor

be authorised to negotiate a settlement on the terms at Annex land that the question of

the use of the reserved powers be left over

until the Governor has reported on the

outcome of his approach to the Executive Council and, if that approach is successful,

on the likely reaction of the Legislative

Council.

NOTHING TO BE WRITTEN IN THIS MARGIN

3.

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