ANNEX
SUGGESTED AMENDMENTS TO STEERING BRIEF
(a) Paragraph 1, last sentence
Indicate what percentage Hong Kong's
contribution represents of this year's garrison cost.
(b) Second sentence - Refer to the Defence Secretary's statement of
3 December 1974 as well as the White Paper.
(c) Paragraph 3, penultimate sentence
A
Add the words "at 1976-77
Estimates Prices" to £39m. Similarly add the relevant exchange rate
to the 450m HK dollars figure.
We suggest amending to read:
(d) Paragraph 4, first sentence. "Our objective must be to secure the agreement of the Hong Kong
Government to the reduction of the garrison to the four and one-third
units which we consider necessary for external defence and internal
security, but on the basis that they will pay for a substantially
higher proportion of the cost than in the past. We aim to have these points embodied in a new Defence Agreement running from 1 April 1976
preferably for a further 5 years.' In the last sentence insert the words "and exchange rate changes" after "inflation".
(e) Paragraph 5, first sentence - After the words "the Governor" add the words "and of the seriousness with which HMG viewed the
matter". (See OPD Minutes).
(f) Paragraph 6, last sentence - Expand to explain what is meant by 4 "breakdown" in this context and why it has to be avoided.
(g) Paragraph 7, first sentence - Before "scope" insert "significant' In the second sentence we do not understand what is meant by describing a smaller garrison as "intrinsicly unviable" We suggest this part of the sentence be deleted.
(h) On the UK objective section as a whole, we suggest you may like to make the point that it is to the direct benefit of the Defence Budget to obtain the highest possible contribution from Hong Kong, to which given present pressures you presumably attach some importance.
"It is fair to say,
??
(1) Insert a new third sentence as follows:
however, that he has also referred on several occasions to a 50: 50
split of the garrison costs and his reference to a £17m figure may be connected with the fact that this represented about 50% of the reduced garrison at its September 1974 price of £33.5m. Hong Kong
officials have been well aware that the cost of the garrison would have risen above the £33.5m figure by the time negotiations take place
/and
No comments yet.
Private notes are available after approval.