CONFIDENTIAL

furters

[to

this

we shall be able to contribute

expansion.

It will clearly be to the

benefit of both sides to work for closer

relations and to allow more regular contacts

at all levels.

Effect on trade of the Suspension of regular British Cargo liner services to China were surepented in MARCH, 199What has beam the effect in trade of this

It is for shipowners to decide when

suspend or resume the services;

the detention of

although in

view of what has happened to British seamen

in Chinese ports, a certain reluctance to

take more risks would be understandable.

for the effect on trade, it is still too

early to tell.

annuw

per for

Defence Contribution (£5m / 1966-1971)

As

The amount of Hong Kong's future contri-

bution towards the upkeep of the garrison will

be considered when the existing Defence

Contribution Agreement (which expires in 1971

is renegotiated. There have of course be en

substantial rises in the costs of buildings,

materials, equipment, rates of pay and

similar iteme !

Review of the Powers and Functions of the Urban Council

I understand that the Hong Kong Government

have certain proposals under consideration

which the se

coc

shall tary of

tate will be interested

to see as soon as they are ready.

Scale of Social Services in Hong Kong

The Hong Kong Government have allocated

40% of their revenue to social services,

including health and education, for the

financial year 1970/71. This is a

and

about

+

the

uncertainty post regulations

stet

GONFIDENTIAL

/remarkable

NOTHING TO BE WRITTEN IN THIS MARGIN

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