6195 D073528 400M 2/74 Cr.P.C. 839/3
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DNOK ET
DRAFT MOD PAPER FOR DOPC
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To:-
Telephone No. Ext.
Department
DEFENCE REVIEW: HONG KONG
A.
Para. 4. Redraft as follows:
"The Governor's firm advice is that he could not get the agreement of Executive and Legislative Councils to a proposal to contribute more than £17 m. a year (Estimates 1975/76 prices). buch a contribution would in cash terms be about double the annual average contribution under the present Agreement. The Governor believes that a higher contribution would be unnegotiable in prosent economic and political circumstances in Hong Kong, which faces a budgetary. gap of about £200 m. (30% of total revenue) in 1975/76. He agrees that the present contribution is unreasonably low, but advises that to do more than double the contribution for a reduced force would be unacceptable to public opinion in Hong Kong, which is already resentful of other policies imposed by HMG, e.g. on the death penalty. Even a contribution of £17 m. might be acceptable only if it was seen that the maximum economies had been obtained. This might mean cutting total costs below 40 m."
B. Para. 8. Redraft as follows:
"(a) To plan for the reduced garrison costing £40 m. and, despite the Governor's advice, to continue to press Hong Kong to contribute 75% of the cost, i.e. £30 m. This would conform with the minimum defence requirement to meet the full
/commitment and
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