TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 154

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PARA .4.

.4. THE INCLUSION OF THE PHRASE TO NORMAL UK GOVERNMENT STANDARDS AND SCALES'' SHOULD WE THINK HELP TO AVOID THE PROBLEM, RAISED IN PARA.2 OF YOUR TELNO.433, OF POSSIBLY INCREASING INTEREST IN THE DETAILS ON THE PART OF THE UNOFFICIALS. ALL EXPENDITURE ON WORKS SERVICES WILL BE DEDUCTED FROM HONG KONG'S TOTAL ANNUAL CONTRIBUTION AND SHOULD NOT GIVE RISE TO COMPLAINTS

THAT HONG KONG IS PAYING TOO MUCH FOR SERVICES PROVIDED TO

BRITISH STANDARDS.

2. THE PROCEDURE FOR ANNUAL REVIEWS PROVIDED IN PARAS 3 AND 4 IN

OUR VIEW MAKES MANY OF THE DETAILED CONDITIONS LAID DOWN IN THE L LAST MEMORANDUM OF UNDERSTANDING UNNECESSARY. THESE REVIEWS WILL, OF COURSE, RELATE TO ACTUAL RATHER THAN NOTIONAL EXPENDITURE AMD WILL BE THE SUBJECT OF AGREEMENT BY THE TWO GOVERNMENTS.

3. WE TOO WOULD PREFER TO SETTLE THIS BEFORE THE SUMMER HOLIDAYS

BUT, EVEN AFTER CONSIDERATION BY THE CHIEFS OF STAFF, THE QUESTION OF COST APPORTIONMENT WILL HAVE TO BE CONSIDERED BY OPD. THE MOD

WOULD FIND IT HELPFUL TO HAVE YOUR VIEW ON THE LATEST DATE BY WHICH YOU WOULD NEED OUR PROPOSALS IN ORDER TO MEET THE DEADLINE OF

1 AUGUST.

CALLAGHAN

FILES HKIOD DEFENCE D MR WILFORD

COPIES TO

MR ANDREW,AUS (GS) MOD MR ABRAHAM, DS6 MOD MR THORP,FÍ(AIR) MOD MR HANSFORD, TREASURY MR AGGLETON, DS(O-G) DOE

2

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