TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 172

in to see y

SECRET

that they could not.

Ministers may eventually be satisfied so long as Hong Kong agrees to pay at least 50%. Neither the Treasury nor the MOD appear to need at this stage to know definitely the size of the Hong Kong contribution. A final decision on the percentage contribution could therefore advantageously be left until the May consultations.

Line to Take

10.

The PUS might suggest that Ministers should be advised in papers for the OPD meeting to agree:

(a) to the £29/31 m. force, subject to final agreement

by the Governor and CBF;

(b)

that formal consultations with Hong Kong should be postponed until May;

(c)

(a)

that any statement before then about the implications of the Defence Review for Hong Kong should be confined to the line in para. 8 above;

that the question of the size of Hong Kong's

contribution and how to put this to Executive Council should be left open for the time being.

16 October 1974