TNAG-0536-FCO40-631-Strength-of-garrison-in-Hong-Kong-1975 — Page 53

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q.

!

at present unwilling to contemplate a greater

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

year of a new Agreement, with 40% being paid in the

early years.

th

(a) Cutting the cost of the garrison to a point at which

a Hong Kong contribution of £17M would represent

75%

Such a garrison would cost about £23M, or £27

the Committee were prepared to make the contribution

of about TOM contemplated in their discussion on

Coptember

tu's

In capability would fall. far short

of what is at present seen as the minimum military

requirement: it could amount te ittle more than a

Bendarmeria,

Next steps Timing

9. The Governor's judgment is that the chances of a

successful agreement will be improved if the Councils are

not asked to give formal consideration to the question of

the defence contribution before May, that is after the

forthcoming Budget Debates have been completed. He would

wish to use the interim period to reach agreement with HMG

on the proposals to be put to the Councils and to take further

informal soundings. If this advice is accepted, it will not

be possible to include any substantive reference to the

future level of the Hong Kong contribution in the Defence

White Paper to be published in March.

Questions for consideration.

10. To enable formal negotiations to be opened with the

Hong Kong Government, answers are sought to the following

questions:-

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