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could not maintain her worldwide air services on their present scale.
Furthermore Hong Kong is denied the full benefits which it seeks to
derive from unrestricted usage of Kai Tak by foreign aircraft because
of HMG's restrictive policy of granting such landing rights on a
reciprocal basis.
10.
Notwithstanding the additional special contribution agreed to
by Hong Kong in 1966 and which was designed to help Britain avoid
devaluation, not only did it in fact make no difference but Hong Kong
itself suffered considerable financial loss when the pound sterling was
devalued. The loss to public funds was of the order of £30 million
whilst the total loss to the Colony was about £50 million. This must
be taken into account when assessing Hong Kong's contribution on this
occasion.
11. During his visit to Hong Kong in January 1970 Mr. Heath, the
present Prime Minister, when discussing the policy of withdrawing troops from Singapore, stated that Britain earned some £300m from
the Far East and could wall afford to maintain defence forces in this
area
12.
On the basis of the foregoing there is no case for any increase
in Hong Kong's defence costribution and indeed there is a strong cass
for a reduction, since a deliberate contribution to the stability of the
pound no longer needs to be made.
PART II PRINCIPLES
13. The Unofficial Members of the Executive Council 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.
14.
Nevertheless the Unofficials agree that a takan 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 including those referred to in paragraph 5 above.
There can be no question of the defence contribution taking automatic
priority over such other commitments.
15. Any contribution voluntarily offered by Hong Kong would be
subject to reduction if there should be a seriously adverse change in
the Colony's economic situation.
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