SECRET/UK EYES A
PRIME MINISTER
314
Dear Jom.
22/10
Sos.
10 Downing Street Whitehall
22 October 1975
H.K.1.0.
0.2.
326)
8
As / Lad formay
a formay Relente
Air DWsoson
Hong Kong Defence Contribution hale
refera dept.
The Prime Minister has seen your Secretary of State's minute MO 5/14 of 17 October, in which he asked for agreement from the Prime Minister and other OPD colleagues that your Minister of State should be authorised if necessary to settle for £25 million in the first year rising to
the full 75 per cent in the second or third year, as the contribution from Hong Kong towards the cost
of a reduced British garrison there.
The Prime Minister endorses the view expressed both
by the Secretary of State for Defence and by the Chancellor of the Exchequer, that Mr. Rodgers should press as hard as possible for an immediate contribution of
75 per cent to the garrison's cost by the Hong Kong Government at whatever price level this proportion is estimated. The Prime Minister agrees, however, that in view of the arguments advanced by the Secretary of State for Defence, Mr. Rodgers should be given discretion to make the
£25 million fall-back offer if it would clearly bring agreement. If the gap between the two sides turns out to be too great to be bridged by such an offer, Mr. Rodgers should refer back to his colleagues with an assessment of the situation, and OPD would then have to consider the question in the light of that report.
I am sending copies of this letter to the Private Secretaries of other members of OPD, and to Brearley (Cabinet Office).
Your
Sincersly.
J. F. Mayne, Esq., Ministry of Defence.
SECRET/UK EYES A
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