FRIORITY ORITY
CYPHER CAT/A
HONG KONG 2279327
SECRET
CRET
REUSTRY NG ST
-3 MAR 1971
ARKIS/G
havo Qui
TO PRICRITY F.C.0. TELEGRAM NO. 144 CF 2 MARCH 1971.
FOR MONSON FROM GOVERNOR.
MY TELEGRAM NO. 134: DEFENCE CONTRIBUTION.
LAST
REF
30)
32) a (4.4
AT THE MEETING AFTER EXECUTIVE COUNCIL TODAY, I TOLD MEMBERS THAT WHILE I APPRECIATED THAT THE ARGUMENTS SET FORTH IN THEIR SUBMISS- ION WERE WELL AND PROPERLY EXPRESSED, I FEARED THAT THEY DID NO MORE THAN COVER, IN THE MAIN, GROUND THAT HAD BEEN GONE OVER MANY TIMES BEFORE. NEVERTHELESS, COMING FROM THEM, I WAS SURE THAT THEIR VIEWS WOULD COMMAND RESPECT AND WOULD BE FULLY CONSIDERED.
2. I SAID THAT MY PERSONAL OPINION WAS, HOWEVER, THAT WHATEVER
THE IMMEDIATE REASON FOR THE 1966 REQUEST FOR AN INCREASED CONTRIB-
UTION MIGHT HAVE BEEN, IT HAD ALSO BEEN HMG'S VIEW FOR SOME
CONSIDERABLE TIME THAT THE CONTRIBUTION OUGHT TO BE INCREASED IN
ANY EVENT, AND THAT HONG KONG OUGHT TO CONTRIBUTE MORE TOWARDS
THE COST TO HMG OF HER OWN DEFENCE AND SECURITY. IT HAD ALSO TO BE REMEMBERED THAT, ALTHOUGH THE UK'S PRECARIOUS BALANCE OF PAYMENTS POSITION IN 1976 WAS, AS STATED IN THE SUBMISSION, A MAJOR CONT- RIBUTING FACTOR TO THE REQUEST FOR AN INCREASED CONTRIBUTION,
THIS ASPECT OF THE MATTER HAD UNDOUBTEDLY BEEN PARTICULARLY
STRESSED IN PUBLIC UTTERANCES ON THE SUBJECT FOR PRESENTATIONAL
REASONS.
3.
FURTHERMORE, IT WOULD BE MISTAKEN TO BELIEVE THAT BECAUSE THE POUND STERLING WAS CURRENTLY STRONGER AT THE PRESENT TIME THAN IN 1966, THE UK'S BALANCE OF PAYMENTS DIFFICULTIES HAD BEEN RESOLVED IN THE LONGER TERM. THESE DIFFICULTIES STILL SUBSISTED
IN QUITE ACUTE FORM.
C
Lt. I THEN WENT ON TO SAY THAT I HAD EVERY REASON TO SUPPOSE THAT MINISTERS WERE STI L OF THE VIEW THTAT THE ONTRIBUTION SHOULD
RE SUBSTANTIALLY INCREASED, ON THE GENERAL GROUNDS THAT MORE OUGHT
TO BE CONTRIBUTED SEMICOLON AND THAT I FEARED THAT THIS VIEW
WOULD BE UNLIKELY TO BE MUCH MODIFIED, IF AT ALL.
15.
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