TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 148

;

with

whom

犬

We facl

we

aus pr.

the Corn vicio

Thai wh

be brought to pay in

SECRET UK EYES A

SE

UK EYES A

Cavice be oly joe on 50% dth

1976/77 (the first year of a successor

0

agreement) is £17m. His view is that the major social programmes

now in hand, at a time of recession in the Hong Kong economy

make it impossible to meet any more greatly increased defence

tim

indiciare in lomalle,

We here

Ap bill. The Governor did however agree that it might be possible

to negotiate a graduated arrangement providing for a steadily

a period of You increasing Hong Kong contribution rising from one half to three

n

cs]

1

Garl quarters over seven years It has been agreed that the successor

agreement will separately make provision for inflation.

Summary

Ster

4. It has not proved possible to reduce the cost of the essential

garrison to a point where a £17m Hong Kong contribution would

₤17m

amount to three-quarters; and the Governor remains convinced that

17m is the maximum that Hong Kong can be brought to pay in

1976/77. There is no constitutional pressure that could override

rowed sije o carga mens the Hong Kong Govt on this issue. But the gapʼhas been bridged to

the extent that it might now be possible on the basis of the

further reduced garrison to reach agreement on Hong Kong paying

half

allen one amit at the outset of a new agreement, rising to three-quarters

z14#、 »

for

at the end. This would be the minimum requirement, and UK

negotiators would naturally aim at securing the most advantageous

arrangements in respect of the period and pace of graduation.

Do Ministers therefore agree:-

(29) that formal negotiations should be put in hand on the

basis of the reduced garrison at Annex A and that negotiators

should be authorised to reach a graduated agreement as

indicated above.

SECRET UK EYES A

UK EYES A