TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 111

1

SERRONER T

-2-

Hong Kong's contribution to defence costs should be:

1976/77

1977/78

1978/79

50%

62.5%

75%

and 75% thereafter for the currency of the agreement which should be for as long as possible, preferably for 10 but not less than 7 years.

2. A time schedule for the release of MOD land (including reprovisioning by the Hong Kong Government where appropriate) should be agreed and annexed to the agreement.

3.

This time schedule should include provisions that would

allow:

a.

vacant possession of Kai Tak that would coincide with or be very closely related to the increase to 62.5%.

b. vacant possession of Victoria Barracks that would coincide with or be very closely related to the increase

to 75%.

4. It was the view of the Hong Kong Government that with the necessary drive and goodwill it was probable that vacant possession of these two sites could be given within the years proposed for the two increases, that is to say 77/78 and 78/79.

5. The feasibility of this time schedule could only be considered in the light of the report of a qualified working party and he therefore proposed that one be convened immediately.

6. The Governor said that the Hong Kong Government could only obtain agreement for the two stages of this very substantial increase if they were closely related to the recovery of these

SEECHER ET

/tangible