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step.

Moreover on general grounds, it would be difficult to

persuade Parliament to send people away from Britain to face

trial for offences that are not regarded as crimes under

British law.

DEFENCE

39.

(Brief no. 11)

The contribution which Hong Kong makes to the costs of

the defence of the Colony is not a current issue. It is not

que to be re-negotiated until 1976 but members of Executive

Council continue to feel strongly about Hong Kong's £8 million

a year contribution.

40.

Possible Criticisms: No other dependent territory pays

for its defence, why should Hong Kong?

41. Line to Take: Britain maintains a very large garrison in

Hong Kong for the benefit of the Colony. The financial burden

is shared in accordance with the Defence Agreement.

AID (Brief no. 12)

42.

Members of Executive and Legislative Councils have long

contended that we should give aid to Hong Kong. The Colony

does not meet our normal criteria for aid, because it is too

wealthy (GDP is over £400 per head). But last year we announced

that, in addition to minor amounts of technical assistanco,

were willing to provide £500,000 for the Folytechnic and

£400,000 for the Technical Institutes.

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/43.

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