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? HK's
(F) THE STRESS ON THE U.K.'S FINANCIAL POSITION IN THE
PRESENTATION OF HMG'S VIEWS WAS UNFAVOURABLY COMMENTED ON AND THE VIEW WAS EXPRESSED THAT IT WAS U.K. 'S
ECONOMIC POSITION WHICH SHOULD BE THE MORE IMPORTANT
FACTOR. WHAT WAS MEANT, I BELIEVE, WAS THAT INSUFFIC-
IENT WEIGHT WAS BEING GIVEN NOT ONLY TO THE VAST
EXPENDITURE WHICH THE COLONY HAS TO FACE BUT-TO THE
FRAGILITY OF AN ECONOMY WHICH IS NOW UNDER ATTACK FROM
MANY DIRECTIONS: ATTACKS WHICH H.K. IS IN A POOR ·
POSITION TO DEFEND HERSELF AGAINST EVEN WITH SUCH A5913-
TANCE AS HMG IS IN PRACTICE ABLE OR WILLING TO PROVIDE.
IN PARTICULAR, THE LAST SENTENCE OF PARAGRAPH 2 OF YOUR TELEGRAM NO. 236 WAS QUOTED WITH SOME ASTONISHMENT
UNOFFICIAL MEMBERS DID NOT FIND THE IDEA THAT A LARGE
DEFENCE CONTRIBUTION SHOULD BE REQUIRED OF HONG KONG IN
ORDER TO ENABLE HMG TO REPAY DEBTS, OR TO ASSIST WITH AID, OVERSEAS INVESTMENT AND TRADE CREDIT, AT ALL
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PERSUASIVE.
THE TONE OF THE MEETING WAS HOWEVER SERIOUS AND RESPONSIBLE,
AND UNOFFICIAL MEMBERS ARE OBVIOUSLY ANXIOUS TO FIND A SOLUTION
WHICH THEY FEEL THEMSELVES. CONSCIENTIOUSLY ABLE TO SUPPORT. THEY
CONTINUED THEIR FRIENDLY AND CO-OPERATIVE ATTITUDE TOWARDS MYSELF, EVEN WHEN I TOLD THEM FLATLY THAT IT WAS TIME HONG KONG IN
GENERAL LEARNED TO FACE UP TO REALITY IN MATTERS SUCH AS THIS,
AND THAT REFUSAL TO PAY A CONTRIBUTION APPROACHING THE MAGNITUDE OF THE DIRECT BENEFIT TO THE ECONOMY OF HONG KONG REPRESENTED BY THE PRESENCE OF THE CARRISON RATHER STUCK IN MY GULLET''.
5. I WOULD NOW STRONGLY RECOMMEND THAT A REPLY WHICH COVERED THE POINTS WHICH ARE FELT NOT TO HAVE BEEN COVERED, AND WHICH IN PARTICULAR WENT A VERY CONSIDERABLE WAY TOWARDS ACCEPTING THE PRINCIPLES IN PARAGRAPHS 13-15 OF THE UNOFFICIAL MEMBERS
MEMORANDUM BE SENT. NOR CAN I SEE MUCH OBJECTION TO SO DOING. HMG HAVE NOT IN FACT (AS I POINTED OUT AT THE MEETING) SUGGESTED THAT THE COLONY SHOULD PAY FOR ANY SPECIFIC PROPORTION OF THE
COSTS OF KEEPING TROOPS IN THE COLONY
BUT MERELY DRAWN ATTENTION TO CERTAIN RELATIONSHIPS BETWEEN THE
/ECONOMIC
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