SECRET
This result of lingity disussions is highly creditable to both the Governer and the H.K. Jeft. Sir
Tomor 7: Wilford have also spent hours, achieving a satisfacting
Mr Wilford
Sir L Monson
agreement during te Pants 12 mon
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Mr Logan
A.R.
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The Private Secretary
HONG KONG DEFENCE CONTRIBUTION
1. On 23 July the Defence and Oversea Policy Committee decided
that the Governor should be instructed to do his utmost to
secure the support of his Executive Council for a proposal that Hong Kong make a contribution towards the costs of the Colony's garrison at an average rate of £8 million for the 5 year period
April 1971 March 1976.
2. In negotiations during August and September the Governor managed to secure the support both of his Executive Council and of the Finance Committee of the Legislative Council for a proposal which would produce the desired level of contribution. During these negotiations it was agreed at the request of
the Unofficial Members that the base date for the review of the
agreement if the cost of capital works were to go up or down by 50 per cent or more should be changed from April 1970 to April 1971, the date from which the new agreement would run (paragraph
(b)(i) of Annex I to DOP (71) 44 refers).
3. The final step, namely approval by the Legislative Council itself, was taken on 6 October (Hong Kong telegram No 743). 4. In his telegram No 762 of 12 October the Governor reported that "the whole subject has not so far aroused the
A selection of public excitement I feared it could
The most
cuttings from Hong Kong newspapers is attached. sensible comment comes from the"Star" (a newspaper normally
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/inclined
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