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AUS(GS)
Copy to:
ACDS (Pol ACDS (Ops)
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97
AUS (P&B)
AUS(CF)
AUS(D Staff)
AUS (NS)
AUS (AS)
FCO(HKIOD)
Mr Dinwiddy
FCO(Defence Department) - Mr Jackson
Treasury Mr Fitchu
HONG KONG: FINANCIAL NEGOTIATIONS
Reference:
B.
C.
1.
AUS(GS) 263/75 of 27 Jun 75. CDS 1222/14 of 13 Mar 75.
D/HIN/WK/8/7 of 10 Apr 75.
194
CDS has seen the draft OPD Paper on the financial negotiations with Hong Kong, forwarded under cover of Reference A, and has made the following comments.
#1
2. Paragraph 2. Page 2, Line 6. Amend to read: garrison could, with some risk, be reduced to at least 4 battalions
·
the
3. Paragraphs 4 and 5. CDS is concerned that insufficient consideration appears to have been given to the Governor's assessment in References B and C that there could be serious disadvantages politically in Hong Kong and to the Ministry of Defence if Hong Kong, as a result of accepting responsibili for more than 50%, demanded a say in the control of the expenditure. Despite the penalty to the Defence Budget, CDS believes that S of S should take the line that we should settle for 50% now and either negotiate an ascending increase within a 5 to 7 years agreement, or suggest a review at a shorter interval.
2 Jul 75
4 of 1
UKKERESA A
SA C-CASSESLS Commodore PSO/CDS Ext: 3353
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