TNAG-0536-FCO40-631-Strength-of-garrison-in-Hong-Kong-1975 — Page 40

SECRET

Agreement on this is unlikely without a constitutional crisis which would harm HMG's

interests in Hong Kong.

9.

A way round the difficulty might be a graduated agreement, with the contribution rising to the preferred level over an agreed period. (In addition to the escalation clause for inflation).

10.

Ministers are therefore asked: -

(a) to take note of the present position and

of the proposed timetable;

(b)

to decide whether studies of a 43

(c)

unit force should now be made;

to consider whether the possibility of

a graduated agreement wit

AFBalation clause for inflition) should

now be explored.

L