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Sir D Watson
Wayson
HONG KONG DEFENCE REVIEW
The
1. The DOPC have decided to inform the Governor that Hong Kong
must pay at least three-quarters of the cost of the garrison. extracts from the DOPC minutes are attached.
2.
This will cause trouble. The Governor advised that Hong Kong
could not pay more than 50%, and offered to try to negotiate a contribution of £17 m. a year on the assumption that the forces might cost about £34 m. He would now, unless the cost of the forces can
be reduced, have to increase his bid to about £25 m.
3.
I think what is needed is a strictly personal and confidential letter to the Governor explaining the situation and discussing tactics with him, to be followed by a telegram with the normal distribution asking formally for his advice. I submit a draft of the preliminary personal letter and of the telegram which I suggest should be sent off on Wednesday to coincide with the arrival of Tuesday morning's bag on Thursday. Mr Jackson agrees.
16 September 1974
CC
Mr Jackson, Defence Dept.
On Stuart
ACSL
A C Stuart
Hong Kong & Indian Ocean Dept.
I have despatched the Celler. Plean Letegrons cunday as you propore.
The Walit
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