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IMMEDIATE
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FM F.C.0. 2309252
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TOP COPY PA..
RECEIVED IN BR No.51
TO IMMEDIATE GOV. HONG KONG TELEGRAM NO. 235 OF 23 MARCH. No. 51
→ YOUR TELNO 144.
Lear
R
31)
23 Мак
HKK 10/9
DEFENCE CONTRIBUTION.
REF.
MIFT CONTAINS TEXT OF REPLY TO UNOFFICIAL MEMBERS COUCHED IN FORM OF LETTER FROM YOU. IT WILL NEED SUITABLE INTRODUCTORY PARAGRAPH. VIEWS REFERRED TO IN PARA 1 WERE SET OUT IN PARA 1 OF MY TELNO 143 (YOUR TELNO 135 REFERS). PROVIDED YOU SEE NO OBJECTION GRATEFUL IF COMMUNICATION COULD BE SENT TO UNOFFICIAL MEMBERS AS
SOON AS POSSIBLE.
2. FOLLOWING ADDITIONAL COMMENTS ON POINTS RAISED BY UNOFFICIAL MEMBERS WILL, I HOPE, BE OF USE TO YOU IN YOUR FURTHER DISCUSSIONS
WITH · THEM.
3. LATEST PUBLISHED FIGURE FOR TOTAL OF UK SHORT AND MEDIUM TERM OFFICIAL DEBT OUTSTANDING (DECEMBER 1970) IS £1,369 MILLION,
14. I WOULD LIKE YOU TO MAKE IT CLEAR TO THE UNOFFICIAL MEMBERS THAT IN AGREEING TO ACCEPT A CONTRIBUTION OF £8.5 MILLION HMG TOOK FULLY INTO ACCOUNT NOT ONLY THE CONSIDERATIONS REFERRED TO BY THE UNOFFICIAL MEMBERS IN PART. 11 TO THEIR MEMORANDUM BUT ALSO ALL OTHER
ASPECTS OF RELATIONS BETWEEN HONG KONG AND THE UK.
5. YOU MAY THINK IT WORTH MENTIONING POINT ABOUT INCREASE IN GNP MADE IN YOUR DISCUSSIONS WITH MR HEALEY IN JUNE 1969. IF GNP IN HONG KONG IS NOW ABOUT US DOLLARS 703 PER HEAD IT SEEMS THAT COSTS OF DEFENCE PLUS THE POLICE PLUS £8.5 MILLION DEFENCE CONTRIBUTION. AMOUNT TO ONLY 2 PER CENT OF GNP WHILE THE UK SPENDS 5.5 PER CENT OF GNP ON DEFENCE ALONE AND SINGAPORE, FOR EXAMPLE, 4.9 PER CENT (1969 FIGURE). YOU COULD ALSO PERHAPS POINT OUT THAT AN ANNUAL CONTRIBUTION OF £8.5 MILLION FOR FIVE YEARS WOULD AMOUNT IN TOTAL TO LITTLE MORE THAN THE COLONY'S EXPECTED BUDGET SURPLUS FOR 1973/71.
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