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EXTRACT FROM THE COMMANDER BRITISH FORCES' LETTER
TO THE VICE CHIEF OF THE DEFENCE STAFF
19/
L
As a result of HMG's decision to withdraw from South East Asia, and to accelerate this withdrawal, and as a hangover from the losses which Hong Kong sustained from UK devaluation, of which they had no warning, there has arisen here a feeling that the United Kingdom is unwilling to fulfil its responsibilities to this Colony, or to invest in its future. Arguments quoted in support of this view are our reluctance to provide a loan towards the extension of the Kai Tak runway or to provide financial backing for the Cross Harbour Tunnel. This attitude is contrasted to that of the Americans whose business firms are expanding their efforts here.
5. We have examined again the political and military reasons for having Hunters here, and have concluded that these are as valid today as they were a year ago; they are summarized at Annex 'A'. As far as maintaining confidence is concerned their presence could be said to be even more important now. They will be a very visible sign of HMG's continuing support of Hong Kong and in this connection will be a most important element in our general role.
6. Even so, there will be very real political difficulties in presenting to the people here a bill for HK$2 million towards refurbished Hunters. It would appear that, as far as the United Kingdom was concerned, Hong Kong was being treated no better than if it were a foreign country (some would say worse, for if it were, it might be getting some financial grant from the United Kingdom to enable it to pay. Singapore would almost certainly be quoted). The alternative explanation which might be given is that the United Kingdom saw no real need to provide any air defence for Hong Kong, which would be in keeping with the feelings I described above.
7. I do feel that HMG has a ready made opportunity of defeating these somewhat hostile sentiments, of gaining considerable credit, and of engendering confidence in our intentions by presenting these Hunters as a free gift to Hong Kong. I hope you will agree with my views and in consequence do what you can to promote this idea of a free gift around Whitehall.
8.
If we do insist on the Hong Kong Government meeting this bill, then I am afraid our stock in this part of the world will be lowered unnecess- arily, and our difficulties in negotiating satisfactorily the next round of support costs post 1971 will be greatly increased.
9. The Hong Kong Government have their own problems in justifying to their people such a financial burden. It would certainly make the matter much easier, locally, if an example of British generosity, on defence matters, such as a gift of these Hunters could be quoted. Incidentally, it would not go unnoticed by the Americans, Australians and other interested
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