PRIORITY
CYPHER CAT/A
FM HONG KONG 029600Z
SECRET
SECRET
TOP COPY
93)
TO PRIORITY F.C.0. TELEGRAM NO. 368 OF 2ND JUNE 1971.
MY TELEGRAM NO. 367 TO YOU.
DEFENCE CONTRIBUTION.
LAST
REF
92)
NE
REF.
FOLLOWING IS TEXT OF UNOFFICIAL MEMBERS REPLY, BEGINS :-
''THE UNOFFICIAL MEMBERS OF THE EXECUTIVE COUNCIL HAVE ASKED ME
TO THANK YOU FOR YOUR LETTER OF 25 MAY 1971 ON THE SUBJECT OF THE
DEFENCE CONTRIBUTION, AND TO REPLY AS FOLLOWS,
2. THE UNOFFICIALS REGARD MANY OF THE ARGUMENTS PUT FORWARD BY
THE SECRETARY OF STATE AS UNACCEPTABLE.
3. THEY NOTE THAT THE SECRETARY OF STATE HAS NOT COMMENTED AT ALL
ON TWO SPECIFIC MATTERS. THE FIRST OF THESE CONCERNS THE HONG KONG
AIRPORT, SEE PARAGRAPHS 8 AND 9 OF THEIR MEMORANDUM OF 27 FEBRUARY
1971. THE SECOND CONCERNS THE TARIFF SYSTEM WHICH IS TO REPLACE
THE U.K. QUOTA SYSTEM FROM 1 JANUARY 1972, AND AS THE RESULT OF
WHICH HMG WILL OBTAIN £4 TO £5 MILLION PER ANNUM FROM HONG KONG'S
COTTON SHIPMENTS TO THE U.K.
4. NEVERTHELESS, THE MAJORITY OF THE UNOFFICIAL MEMBERS (ONE DISSENTING, AND ONE BEING AT PRESENT OUT OF THE COLONY), ARE
PREPARED TO RECOMMEND THE MAKING OF A VOLUNTARY TOKEN CONTRI-
BUTION. THE RECOMMENDATION, WHICH IS MADE AFTER CAREFUL CONS I D-
ERATION OF ALL THE CIRCUMSTANCES, AND REPRESENTS IN THE VIEW OF
THE UNOFFICIALS THE MAXIMUM WHICH HONG KONG CAN AFFORD IN ACCORD-
ANCE WITH PARAGRAPH 14 OF THEIR MEMORANDUM, IS £7. MILLION A
YEAR FOR EACH OF THE NEXT 7 YEARS, MAKING A TOTAL OF £49 MILLION
OVER THE PERIOD.
15.
SECRET
RECOVED IN REGISTRY No.51
- 3 JUN 1971
AXX10/9