minimum forces required is roughly correct. If Ministers accepted
this view we would nevertheless think it important that not more
than half of the total expenditure should fall on us. We have
therefore considered what further savings might be made in order to
bring the total closer to the figure of £34 million, i.e. to achieve
an equal division of costs between Hong Kong and ourselves, provided
the Governor can obtain the agreement of the Executive Council to
a contribution of £17 million a year at constant prices. We
believe that the following further steps could be taken
[
Recommendation
14. We recommend that Ministers should approve the principle of
equal division of costs between ourselves and Hong Kong with a
contribution of about £17 million a year from each side, and should
authorise further interdepartmental consideration and consultation
with the Governor on the implimentation of the further savings
proposed in paragraph
above.
29th August 1974
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