XCS(71)3
SECRET
7
21
If Honourable Members were to accept that the above represented a valid basis on which an offer might be made to HMG, it would be the intention to reiterate the stipulation applicable to the present agree- ment that all buildings and facilities and, of course, the land on which they stand, the cost of which is in any part covered by this agreement, should revert to the Hong Kong Government without compensation when no longer required for defence purposes. It would be further stipulated that the whole contribution would be subject to review in the event that any agreed decision is taken to increase or reduce the level of the permanent garrison by more than one major unit.
22
Honourable Members will be asked to advise whether a proposal to contribute to defence costs during 1971 - 76 based on paragraph 19 above, and subject to the stipulation in paragraph 21, should be communi- cated to the Secretary of State for acceptance by Ministers; subject always to the provision of the necessary funds by the Finance Committee in due
course.
26th January 1971
(SCR 20/1486/70)
SECRET
COUNCIL CHAMBER
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