SECRET CO
محمد
TOTAL COSTS WHICH IT WOULD REPRESENT) WHICH OBTAINED WHEN THE CURRENT CONTRIBUTION WAS NEGOTIATED IN 1966. IT WOULD REPRESENT SOME 3.9 PER CENT OF HONG KONG'S ESTIMATED REVENUE FOR 1971/72: IN 1967/68 THE CORRESPONDING FIGURE WAS 4.25 PER CENT: IMMEDIATELY AFTER THE WAR IT WAS 5.5 PER CENT.
4. IT HAS LONG BEEN HMG'S POLICY THAT THE GOVERNMENTS OF DEPENDENT TERRITORIES SHOULD PROVIDE FOR THEIR OWN INTERNAL SECURITY (ON THE GROUNDS THAT THE MAINTENANCE OF LAW AND ORDER MUST BE ONE OF THE FIRST PRIORITIES OF ANY GOVERNMENT) AND THAT THEY SHOULD ALSO PROVIDE AS FAR AS POSSIBLE FOR THEIR OWN LOCAL DEFENCE.
5.THE GARRISON IN HONG KONG IS THERE FOR THE DEFENCE OF THE COLONY AND TO ASSIST IN THE MAINTENANCE OF LAW AND ORDER, ITS PRESENCE IS OF DIRECT ECONOMIC BENEFIT TO THE COLONY BOTH BY REASON OF THE CONFIDENCE IT ENGENDERS IN THE EYES OF OVERSEAS TRADING PARTNERS AND INVESTORS AND BY VIRTUE OF THE LOCAL SPENDING THAT IT GENERATES. ITS MAINTENANCE INVLOLVES HMG IN VERY CONSIDERABLE ANNUAL EXPENDITURE WHICH DURING THE NEXT FEW YEARS WILL BE AT LEAST £17 MILLION, EVEN IF ALLOWANCE IS MADE FOR A CONTRIBUTION OF £8.5. MILLION FROM THE COLONY. THIS REPRESENTS A FORM OF DIRECT ASSISTANCE TO HONG KONG OF A FAR HIGHER ORDER THAN THAT GIVEN TO ANY OTHER TERRITORY OF COMPARABLE SIZE, DEPENDENT OR INDEPENDENT.
་
6. WITH REFERENCE TO PARAGRAPH 8 OF YOUR MEMORANDUM I HAVE BEEN INFORMED THAT NO RECORD CAN BE TRACED OF ANY SUCH UNDERTAKING. HOWEVER THE FACT THAT HMG WERE UNABLE TO HELP WITH THE EXTENSION OF KAI TAK AIRPORT SHOULD CERTAINLY NOT BE TAKEN AS AN INDICATION OF A LACK OF INTEREST ON THEIR PART IN THE WELL-BEING OF THE PEOPLE OF HONG KONG. THAT THIS IS FAR FROM BEING THE CASE WAS SHOWN IN THE ASSISTANCE RENDERED BY THE GARRISON IN DEALING WITH THE
DISTURBANCES IN 1967. THE TRUTH IS THAT THE CALLS FOR FINANCIAL AID UPON HMG ARE SUCH THAT THEY CAN ONLY BE MET ON A SYSTEM OF PRIORITIES BASED ON NEED, AND, AS YOU WILL APPRECIATE, HONG KONG CANNOT RANK HIGH IN SUCH A SYSTEM. IT IS INCORRECT TO SAY THAT HMG DO NOT EXPECT REIMBURSEMENT FOR SUMS EXPENDED ON AID CONTRIBUTIONS. MORE THAN HALF OF HMG'S OVERSEAS ECONOMIC AID TAKES THE FORMS OF LOANS NOT GRANTS.
7. MMG ARE IN ENTIRE SYMPATHY WITH THE DESIRE OF THE UNOFFICIAL MEMBERG FAITHFULLY TO DISCHARGE THEIR DUTIES TO THE GENERAL PUBLIC OF HONG KONG. HMG ARE CONCERNED ONLY TO ENSURE THAT ANY CONTRIBUTION
/FROM