TNAG-0617-FCO40-765-Strength-and-cost-of-UK-armed-forces-stationed-in-Hong-Kong-1977 — Page 182

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for Hong Kong is split 50-50 only in the financial year 1976/77. In the coming financial year the liong Kon; Government is to pay 62 and, in 1978/79 and subsequently, 75%.) I cannot endorse the suggestion that we approach the Americans for that proportion of the pay and allowances not borne by the Hong Kong Government under the Defence Costs Agreement.

2. My preference - and I realise that if it starts at all it may not run far is that we should persuade the MCD that, in addition to the arguments set out in Mr Roycroft's draft, there is a defence interest here sufficient to justify them bearing all the. costs (and I wonder, in this respect, if the draft letter to Mr Whitmore might not be spiced with such clauses as "and it would, of course, reflect badly upon the UK armed services if a decision was taken to withdraw the officer from Japan"?) or permunde the Americans to live up to our understanding of the ad referendum promise made by the tate Dep rtment. And I suggest that in neither approach should the Hong Kong angle be mentioned. It would serve in the short-term to complicate the issue and in the long term might jeopardize good feeling between the Hong Kong and UK Governments.

T J David

10 February 1977

Hong Kong Department K 245 233 4777

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