GRS 75%
CYPHER CAT/A
FM HONG KONG 011020Z
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RECEIVED IN
REGISTRY No. 60
- 2 APR 1975
WKK 10)!
TOP COPY
TO ROUTINE F C O TELEGRAM NUMBER 304 OF 1 APRIL.
MY TELNO 257: DEFENCE REVIEW.
R
111
NEXT BRF.
1:29
FOLLOWING FOR SIR DUNCAN WATSON FROM GOVERNOR.
I HAVE MET UMELCO. EVERYONE SPOKE IN TURN.
2. THE POINTS MORE OR LESS COMMON TO ALL WERE:
(A) ALTHOUGH HONG KONG MUST RELY ON THE ROYAL HONG KONG
POLICE TO DEAL WITH CIVIL DISTURBANCES, THE GARRISON IS ESSENTIAL TO HONG KONG AS A SYMBOL OF H.M.G.'S
COMMITMENT, TO BACK UP THE POLICE, AND TO DO THINGS THAT THE POLICE ARE NOT TRAINED OR EQUIPPED TO DO.
(B) A NEW AGREEMENT SHOULD BE ACCOMPANIED BY REAFFIRMATION
OF H.M.G.'S COMMITMENT TO HONG KONG.
(C) THE DIFFICULTY OF ABSORBING INTO THE BUDGET IN PRESENT
CIRCUMSTANCES BOTH AN INCREASED DEFENCE CONTRIBUTION AND
INCREASED SOCIAL SPENDING.
(D) THE DIFFICULTY OF MEMBERS IN PRESENTING TO THE PUBLIC:
(1) AN INCREASED DEFENCE CONTRIBUTION AT A TIME WHEN
SOCIAL PROGRAMMES WERE BEING REPHASED:
(11) FURTHER TAX INCREASES IF A SIMULTANEOUS HIGHER
DEFENCE CONTRIBUTION ALLOWED MISREPRESENTATION THAT
THE FORMER WERE FOR H.M.G.
3. A LINE OF ARGUMENT DEVELOPED TO THE EFFECT THAT FOR H.M.G.
TO MAKE THE DEFENCE OF HONG KONG DEPENDENT ON A CERTAIN LEVEL
OF PAYMENT BY HONG KONG WAS INCOMPATIBLE WITH MINISTERS' STATE- MENTS OF COMMITMENT TO THE DEFENCE OF DEPENDENT TERRITORIES. I
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