TNAG-0536-FCO40-631-Strength-of-garrison-in-Hong-Kong-1975 — Page 12

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than 60% of the cost of a £35M garrison by the eighth year of

new Agreement or 40% in the early yours.

Questions for consideration

J

8. Ministers are, therefore, asked whether they agree that

a study should now be made with Hong Kong of the implications

of a garrison costing about £35M, on the basis that such a

garrison might form an element on a compromise agreement with

Hong Kong.

9. But even if such a garrison acceptable

there will still be a gap of

Labution and

£40m

between the Govenor's best estimate of what Hons can pay I a gap of £13mm iwith a

number of other questions te

leave

₤35m force)

force and ₤17 with a £35.

Ministers may wish to expreer preliminary views new.

example,

Question 1. Do Ministers regard £10M as being an per

limit for the UK contribution?

question is "Yes" then:

If the answer to this

Question 2. Do Ministers agree that Hong Kong must be

pressed to pay the difference (£17M plus £8M = £25M)?

the answer is "KO" then.

Question 3.

Do mining two of ace that an attempt should be made to

ly the cop to be bridge from both ends?

The gar

sevent posit

If There are two ways of achieving this for example: -

so,

offers.

(a) To increase both the UK and Hong Kong A

jjjjjjjj na tery c.g. to one-third and two-thirus

force)

a £35m force

of the cost ( 2M and £23M respectively or && 13mand & 26m for a £4cm (b) To graduate the Hong Kong contributtons, with

brams the whole cost above Mas Kay's £17m the UK taking the whole chore (21) at the

paying the bullet

beginning of the period and Hong Kong pickin the cost

Ilias abegi at the end, of the periods Therefore:

Que tipe 4 Would Hinistery agree that we should stort

negotiations on the basis of (a) above and work out

illustrative graduated schemes as at (b) above as a

fa back position?

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