7/2
= her
tean 50%.
30/34 = trachon
SECRET UK EYES A
taxation, but at the same time reaping maximum economic
benefits from the garrison.
9.
As regards the size of Hong Kong's contribution
the Governor has persistently taken the line that the
colony cannot be expected initially to do more than
double its present contribution to about £17M a year,
although he has not ruled out the possibility of a
graduated contribution rising to a higher figure in later
years. He has pointed out that Hong Kong is less interested
in percentages than in the provision to be made for defence
in Estimates 1976/77. The Hong Kong representatives are
likely to say that, while they accept that some increase
in the colony's contribution is justified, it is quite
unrealistic for HMG, which was equally a partner to the
existing agreement, to expect Hong Kong to raise its
trachón contribution from £84 to £30M in a single step.
75%.
K
They
will probably point out that the economy of Hong Kong is
now less buoyant than in the recent past and that a major
increase in defence expenditure could only be met at the
expense of planned social programmes or by increased
taxes which would discourage the commercial activity on
which the colony's economy depends.
They will not fail
They
to make the point that, with the proposed reduction in the
garrison, they are being asked to pay more for less.
may also argue that HMG, which has a constitutional
responsibility for the integrity of the colony and
derives economic benefit from it, should be prepared to
pay the greater part of the defence costs and remind us
that Hong Kong is the only dependent territory which we
expect to contribute to its own defence.
SECRET UK BYES A