TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 132

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4. IF ASKED WHETHER QUOTE A LARGER PERCENTAGE OF. THEIR COST UN QUOTE MEANS THAT HONG KONG WILL HAVE TO FIND MORE THAN THE PRESENT C8 AND A HALF MILLION, YOU MAY SAY TO-EXCO THAT UNDER · PRESENT CIRCUMSTANCES HMG ARE BOUND TO PRESS FOR THIS.

5. YOU SHOULD ADD HOWEVER THAT IT WOULD BE PREMATURE TO CONSIDER, AND CERTAINLY TO DISCUSS IN PUBLIC, THE SIZE OF HONG KONG'S EVENTUAL CONTRIBUTION. FIRST THE EXPERTS MUST AGREE ON THE NECESSARY FORCES, AND THEN HMG AND THE HONG KONG GOVERNMENT MUST DISCUSS THE APPROPRIATE DIVISION OF COSTS. PREMATURE PUBLIC DISCUSSION OF THIS DIVISION WOULD ONLY COMPLICATE THE

CONSULTATIONS,

6. GRATEFUL FOR YOUR VIEWS ON HOW THE STATEMENT SHOULD BE HANDLED IN PUBLIC. OUR PRESENT THOUGHT IS TO SAY THAT IT MEANS WHAT IT SAYS. THERE WILL BE SOME REDUCTIONS, BUT FORCES SUFFICIENT FOR HONG KONG'S NEEDS WILL BE RETAINED. DISCUSSIONS ON THE RIGHT LEVEL OF FORCES ARE CONTINUING. THEREAFTER THERE WILL BE CONSULTATIONS WITH THE HONG KONG GOVERNMENT ABOUT THE APPROPRIATE LEVEL OF CONTRIBUTION. IT WOULD BE PREMATURE TO TALK EITHER OF SPECIFIC PERCENTAGES, OR OF THE TOTAL COST TO BE DIVIDED.

7. PLEASE SHOW THIS TELEGRAM ON A PERSONAL BASIS TO CBF HONG KONG AND INFORM HIM THAT A SIGNAL FROM THE CHIEFS OF STAFF WILL FOLLOW,

CALLAGHAN

FILE S

COPIES TO:

HD/HKIOD

HD/DEFENCE D

PS

PS/FUS

PS/LORD GORONWY-ROBERTS

SIR D WATSON

SIR G ARTHUR

MR THOMSON

MR WILFORD MR MALE

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MR HOCKADAY MOD

MR BRYARS (AUS (GS) MOD CDR FEROWNE D OF DP(C) MOD MK SMITH CABINET OFFICE

MR H BLANKS MOD

MR GF HALL. TREASURY

MR JE HANSFORD TREASURY