TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 183

MINISTRY OF DEFENCE

WHITEHALL LONDON SW1A 2HB

TELEPHONY at 330 7022

SECRET UK EYES A

MO 5/14

PRIME MINISTER

HONG KONG DEFENCE CONTRIBUTION

Your Private Secretary's letter of 22nd October authorised the Minister of State for Defence to conduct negotiations with the Hong Kong authorities on the basis of achieving an increase in the current contribution to the costs of the garrison from £8.51 a year to

2.

a.

75% of the cost of a reduced garrison,

details of which were outlined in my minute of

8th July, or

b. as a fall-back, £2514 in the first year rising to 75% in the second or third year.

The Minister of State is currently in Hong Kong and has reported to me that after consultation with the Executive Council and the Finance Committee the Governor of Hong Kong has still not obtained authorisation to agree to Bong Kong accepting any more than 50% of the total annual costs of the garrison in each year of a five year agreement. He is, however, prepared to recommend to his unofficials that they should accept a five year agreement under which Hong Kong's share would be:

a. 50% in the first year;

b.

62.5% in the second year;

C.

75% in the third and subsequent years.

SECRET UK EYES A

/ The