CONFIDENTIAL
Brief No ()
REACTIONS TO THE 1971 DEFENCE COSTS AGREEMENT
i. The 1971 Defence Costs Agreement negotiations and subsequent publication provoked widespread opposition both from Unofficial Members of the Executive Council and Legislative Council (UMELCO) and later the press. As memories of these negotiations may still be fresh in Hong Kong (two of the present Unofficial Members of ExCo were appointed before the 1971 negotiations) it may be useful to outline briefly some of the points made by Hong Kong at the time. (These do not, of course, represent HMG's news or indeed the views of all representatives of Hong Kong opinion, but they may be useful background when writing and negotiating tactics).
The more important and general arguments used by UMELCO during th negotiations were as follows:-
(a)
It was not accepted that colonial governments were entie responsible for all aspects of their internal security. had no obligation to defend a colonial territory not only external aggression but also against internal subversion. the particular circumstances of Hong Kong, internal and exi defence were complementary.
(b) HMG spent large sums in defence and aid contribution elsewhere and did not expect to be reimbursed.
(c) Hong Kong was unique as a dependent territory in ree
little financial aid from the UK.
(a) Hong Kong contributed substantially to the UK economy other ways, eg through invisible trade, aircraft agreement
(e) Any defence contribution had to be considered in rei to Hong Kong's planned expenditure on housing, education, services and public works.
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CONFIDENTIAL
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