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SECRET
(113)
Mr Wilford
Mr Logan
The Private Secretary
Agreed. H.R...
HONG KONG DEFENCE CONTRIBUTION
1. The Secretary of State may wish to make use of the
following arguments in support of the recommendation in
paragraph 8 of the attached memorandum for DOPC.
(a) We must make every effort to reach a settlement of
this problem without recourse to the reserved powers.
(b) The imposition of a contribution by using the reserved
powers (whether this were done through the official
majority in the Legislative Council or by Order in
Council) could have far reaching implications and
in the long run could cost HMG more dearly than
would acceptance of a reduced defence contribution.
(c) We should be guided by the man on the spot. The
Governor considers he would have a good chance of
persuading a majority of the Unofficial Members of
Executive Council to accept the proposals in Annex I.
But he also considers that those proposals represent
the maximum contribution which stands any hope of
acceptance.
(a) Even if the Governor's proposals are accepted by
Executive Council it does not follow that they will
be accepted by Legislative Council. Only one member
of Executive Council is also a member of Legislative
Council and he is known to be opposed in principle
to the payment of any defence contribution at all.
SECRET
/(e)