TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 80

SECRET

THE PRIME MINISTER

Personal Minute

No./

10 DOWNING STREET

SECRETARY OF STATE FOR DEFENCE

DEFENCE REVIEW: HONG KONG

82

(79)

H. K. 1.0. D.

A/S Lad

ki

Loud Formany Rolate Mi 1). Watson / Phifale The Resinsen/Defence Jyl

PA

BD

313

と

You mentioned briefly at OPD this morning the correspondence

arising from your letter of 11 February to the Foreign and

Commonwealth Secretary about Hong Kong and the Defence Review.

Since there was no fuller discussion on the subject at this

morning's meeting, I think I should let you have my views in

writing.

I agree that further work should be done in order to reduce

the cost of the garrison in Hong Kong as much as possible. I

also think that, when formal negotiations begin, these should be

based on percentages rather than on money figures. Our firm | objective should be to get Hong Kong to pay 75 per cent of the

total cost, as already agreed in OPD, but if this proves impossible,

I think that our negotiators could agree, ad referendum, to a

50 per cent contribution from Hong Kong in the first year of a five

or seven-year Agreement, rising by stages to 75 per cent in the last year, or to any variation of this percentage pattern (e.g. 2 level of about 66 per cent throughout the period) which would

produce a result no less favourable to us.

I am copying this minute to the Foreign and Commonwealth

Secretary, to our other OPD colleagues, and to Sir John Hunt.

20 February 1975

SECRET

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