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Sir L Monson

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Mr Logan

HONG KONG DEFENCE CONTRIBUTION

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Supatice.

1. On 23 March the Secretary of State sent a message to the

Unofficial Members of the Executive Council regretting that HMG

felt unable to alter the views conveyed to them earlier by the

Governor.

2.

In reply, the Unofficial Members made two points:-

(a) they considered that the reply of the Secretary of

State did not satisfactorily answer many of the

points made in their memorandum;

(b) the Secretary of State's assertion that £8.5 million

was the minimum contribution acceptable to HMG, without

any indication of acceptance of the principles set

out in their memorandum, left them in no position to

recommend the making of any voluntary offer in

accordance with those principles.

3. The following are the principles referred to by the

Unofficial Members:-

They are unable to accept the general principle that

the Colony should pay for any specific proportion of the

costs of keeping troops in Hong Kong.

Nevertheless they agree that a token contribution

should be made provided the Colony is able to afford it.

The payment should be offered voluntarily without reference

to any specific rules or formulae; but the amount must

have due regard to Hong Kong's other financial commitments.

There can be no question of the defence contribution taking

automatic priority over such other commitments.

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