Reference

19

Not sure of this: the military

the frantior not the police. It was

a threat to the

military ind

Mr Laird

1.

2.

Jair

Please see the attached minute from Mr Wilford.

This really boils down to what interpretation is placed on the "external defences" of Hong Kong. If it means an external threat of any kind, then there is perhaps some argument for maintaining that the cost of the fence is HMG's liability. It is clear that no military threat was involved and we have in fact admitted as much to the MOD. There can therefore be no question of expecting their votes to bear the cost and we have told them so.

3. If, therefore, HMG is to bear the cost, I can see no alternative to FCO votes being used for the purpose. Finance Department have said that those votes just do not have this kind of money to spare and it would presum- ably mean asking the Treasury for more money.

4. It is clear from folio 9 on H.W.B. 10/16 that your predecessor did not think much of Hong Kong's case and I must confess that I share his doubts.

5. There is, of course, always the argument that Hong Kong's peculiar situation is such that its internal security situation is particularly (one might say primarily) dependent on the presence or absence of external threats, whether these take a military or non-military form. In 1967 Hong Kong's defence contri- bution was based on the costs of that proportion of the garrison which was required for internal security purposes. With respect, I think it would be difficult to maintain the argument at X of Mr Wilford's minute. The view has often been expressed in the past that if China wanted to take over Hong Kong, rather than do so by direct military aggression they would probably seek to upset the Colony's internal security (by means such as a wholesale influx of "refugees") to an extent which would enable them to argue that they had to step in to restore law and order.

6.

I suggest that when this matter is discussed with Mr Wilford a representative of Finance Department should also be present.

WA Gaminara Hong Kong Dept 31 December 1971

DD 896639 140609 500M 7/71 GM 3643/2

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