Confidential
CONFIDENTIAL
The capital works costs have now reached the level of 50% up
at April 1971 prices and an increase of HK$ 35M (£2.85%) in the
amount which can be spent on capital works has recently been agreed
in principle with the Hong Kong Government. It has been endorsed by
the Executive Council in the Colony and awaits formal approval of the
Finance Committee. It is desirable not to refer in any way to this
negotiation at this stage in the House, if possible: but a very broad
form of words has been suggested in the Supplementaries in case of
need.
5. The total cost of the garrison is now about £30 a year.
contribution by Hong Kong is thus less than 25%.
Confidential
THE DEFENCE REVIEW
The
6. On 27th March the Minister of State at the FCO came under some
pressure in the House to give assurances that HMG would "support Hong
Kong, stay in Hong Kong and maintain the garrison in that colony".
Mr Ennals made it clear that the Defence Review is to be all embracing,
but under further questioning went on to assure the House that, "Her
Majesty's Governments commitments to Hong Kong will remain and there
is no suggestion at all that our presence in Hong Kong should be
withdrawn" (Hansard col. 435 attached). Sir Anthony Royale subsequently
wrote to Mr Ennals asking for clarification of the exact position in
relation to the garrison. The Ministry of Defence at this stage was
anxious that nothing should be said which might inhibit our freedom of
decision in the Defence Review, while the FCO were concerned to reassure opinion in Hong Kong as far as possible. The reply sent (attached) was designed to avoid any commitment in respect of the garrison, whilst at the same time making it clear that it was HMG's policy to
The same line has been maintain our administration of Hong Kong.
closely followed in a proposed Supplementary.
CONFIDENTIAL