SECRET
UK WYES A
1466
ра
1971=58:50.
ра
£3.
1975=£30m
10. The sharing of defence costs has been a sensitive
political issue in Hong Kong in recent years. In 1966
in negotations with the then Colonial Secretary (when
we were asking for £5M a year) the Unofficial members
of the Hong Kong Government came close to resignation,
which would have caused a constitutional crisis and was
сай
par only narrowly averted by the influence of the Governor,
The present time is not propitious for demanding a major
increase in the defence contribution since, quite apart
from the state of the Hong Kong economy, HMG is already
pressing the colony on a wide range of other issues from
passports to labour relations. The Unofficials may therefore
be expected to be in a somewhat unreceptive mood. If they
are pressed too hard there is a risk of the talks breaking
down in an atmosphere of bitterness and the possibility
of a constitutional crisis which would make the resumption
of negotiations much more difficult. Realising that in
are
these circumstances HMG will not wish to push matters to
extremes, the Unofficials must be expected to adopt a
tough line.
Negotiating
Procedure
11. The negotiations will open on 28 October with a joint
session of the Hong Kong Executive Council and Finance
Committee at which the Minister will be able to give a
full exposition of HMG's position. Constitutionally any
agreement must be concluded by the Governor-in-Council,
but it is the Finance Committee which must vote the money
to pay for the defence contribution. This arrangment
will thus enable the Minister to aduress the two most
influential bodies together. The session will be in
confidence.
SECRET UK DYES A
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