TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 75

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BACKGROUND AND ARGUMENT

4. The background to this matter is contained in

the Annex to this Brief.

5.

Although it has not been possible to secure

inter-departmental agreement on the recommendation

to be put to the Defence and Overseas Policy

Committee, the form of the draft Memorandum has been

agreed with the departments concerned who have been

made aware of the recommendation which the

Secretary of State is advised (see paragraph 8 of

the draft) to put to the Committee.

6. The options listed in paragraph 7 of the

draft Memorandum have been included at the request

of the Treasury and the Ministry of Defence.

(One other option, namely a reduction in the size

of the garrison, has by general agreement been

omitted because it would undoubtedly cause the

Governor's unofficial advisers to harden their

attitude still further and to withdraw or reduce

even the offer that they have been prevailed upon

to make - see paragraph 5 of the Memorandum and

paragraph 14 of the Annex to this brief)

7. Although the Ministry of Defence, in particular

are reluctant to move at all from the figure of

£8.5 million (option (a)), there is little doubt

that both they and the Treasury recognise that a

contribution of this magnitude will only be

obtained if it is imposed upon Hong Kong.

18.

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