(134392) Dd. 737115 750M 4/70 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Take in ship as para 2.

,C.B.

Defence.

Type 1 +

From

Sir D. Monson- Mr Wilford Telephone No & Ext.

Department

to Cyprus

replying, in Latie Monson's absence to

л

Thank you for your letter DUS (F) 153/4 of 15

September on the subject of the Hong Kong defence

Goldsmith's lett 17 Septembh of

contribution.

21 September.

Whil

have also scan

Scalling's tatter of

While we do not query the MOD record of

ber]

our discussions with you on 7 September We have

to bear in mind that in the event the size of

Hong Kong's contribution will be determined by

what the Governor can persuade his unofficial

advisers to accept as a reasonable charge against

rementering Hong Kong funds. It is worth bearing in mind here

that after the then Secretary of State for the

Colonies visited Hong Kong in 1966 for the express

purpose of negotiating the present contribution

he went on record as saying that " there was a

very real possibility at one stage that unofficial

members would feel obliged to tender their

resignations.

But fortunately and under the strong

leadership of the Governor the majority of the

unofficials accepted the need for an increase and

evolved the offer to contribute £5 million a year

for a period of 4 years".

4.

As a result of a continuing clash of interests

between HMG and the Hong Kong Government, mainly

in the economic and commercial spheres, our relations

with the Colony are if anything worse today than

they were in 1966. The Governor will have at least

/as.....

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