TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 35

Present:

UK

DEFENCE COSTS

SECRET

Record of the first plenary meeting at Government House on 28 October, 1975

HK

Mr. Wiggham Mr. Jenney PS/GH

Service Advisors

CBF

Capt.-in-Charge

CRAF

Col. Tillotson Col. Palmer

Mr. Gough

Minister of State

HE

for Defence

Mr. Andrew

CS

Cdre. Perowne-

FS

.Mr. O'Keeffe

S for S

Mr.

Mr. Ward

Jones

Mr. Thorpe

Mr.

Mr.

Sandars Goodfellow

+

H.E. opened the meeting by saying that it was

clear from the morning meeting with the Executive Council

and Finance Committee that there was a large gap between the UK request that HK should meet 75% of costs and the HK

offer of meeting 50%. H.E. was not authorised to go beyond

50% but he suggested that it would be helpful if both sides

now examined the possibilities for closing the gap.

2.

The Minister of State commented that he would

have welcomed the opportunity to reply to some of the points

made by Unofficials at the morning meeting. He had in mind

particularly the suggestion that revenue would not increase if

HK raised its taxes, that much of the money spent on the garrison

ended up outside HK and that, if HK was called upon to pay the

full costs of the garrison, this would undermine the UK

commitment to HK to the extent that HK would be better off

without a garrison at all.

said that some of their

H.E.

SECRET

2

?