TNAG-0478-FCO40-543-Strength-of-garrison-in-Hong-Kong-1974 — Page 135

SE CRET

3. YOUR PARA 4. THIS IS CORRECT ACCORDING TO MOD FIGURES. THE PAPER WILL UNDERLINE THIS FACT, AND BOTH WE AND MOD WILL BE WORKING FOR THE RECOMMENDATION OF OPTION LA TO MINISTERS, BUT WE MAY HAVE TO ACCEPT THAT FURTHER ECONOMIES WILL BE NECESSARY

TO BRING THE TOTAL COST NEARER TO £34M 1.E. DOUBLE THE £17H

CONTRIBUTION FROM THE HONG KONG GOVERNMENT, WE ARE ASSUMING

THAT THE LATTER WOULD BE AT 1974 PRICES BUT THAT IT WOULD GROW

AS NECESSARY TO TAKE ACCOUNT OF RISING COSTS.

CALLAGHAN

FILES

HD DEFENCE D

HD HKIOD

PS/PUS

SIR G ARTHUR

SIR D WATSON

MR MALE

2

SECRET

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