Secret

the main beneficing of

(f)

Which would be communit

Chima (see (hi belons)

(8)

6.

will be involved in considerable expenditure on the

development of technical education, quite apart from

heavy expenditure on other social services such as housing,

(there are still some 500,000 squatters), the medical

services and the public assistance scheme.

Should there

failure to mouse be large-scale unemployment as a result of falling exports

civil disturbances might well ensue and in such circum-

stances the possibility of increased expenditure by HMG

cannot be ignored.

Unless we are prepared to accept the consequences of a

first class political crisis in Hong Kong, we cannot use

the official majority in the legislature to force

through acceptance of a contribution greater than that

which Unofficial Members of the Council are prepared to

accept. The Governor puts this figure at a maximum of

£7.5 million.

The then Secretary of State for the Colonies had the

utmost difficulty in 1966 in negotiating the present

defence contribution in Hong Kong: it is expected that

the difficulties in negotiating the post-1971 contribution

will be at least as severe.

(h) The distinction between intend and extend security in

Hong Kong in artefarel. The external threat in from The Communit

Their strategy is to promet play Goverment in China.

grievances in Hong Kong

M

licad

to create intera disturbances whil

сти

'intervene " and medan Dew repreduce would give them an occasion to "intervene " and redu

Маско-уре гласный, A crisis over the defence contribution would

the beast chance of all of formenting

Hong Kong Department

November, 1970

prorrile

them with

with the

Internal Trouble and areolo the stud no best suut

thew strategy

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