Contribution

7.

There

But with an assistance we

are tactical

HMG has So

far made no formal request to the Administration for a contribution. Initial requests for assistance have been directed elsewhere. ever-expanding programme of requests for would expect to be asked soon. benefits for Hong Kong in offering a contribution before any formal request for assistance is received and before any unrealistic expectation is given to the coalition as to

level of contribution Hong Kong should make, given our prosperity etc.

8.

the coalition.

The sum should also be in

If we make a contribution voluntarily, as the Administration proposes, it should not be so small as to be considered derisory, given the huge outlays being sustained by keeping with what our neighbouring economies are contributing. It should also be a sum which the Hong Kong community at

large can support. The figure of HK$230 million, or approximately 15 million pounds sterling, is considered to be large enough to make a favourable impact, without having a significant detrimental effect on our budgetary position. It is thus proposed that this figure be adopted.

9.

It is proposed that the contribution should be made to the UK. There are three reasons for this. First, among the coalition countries, the UK has the closest constitutional links with Hong Kong. Secondly, there is no UN fund as such. Thirdly, most contributions made so far have been made to the USA, although the UK has the second largest contingent taking part in support of the UN Security Council Resolutions.

Proposal

10.

It is proposed that a new Other Non-Recurrent Subhead "Contribution towards the resolution of the Gulf conflict" be created, with supplementary provision of $230 million, offset by the deletion of an equivalent amount under Head 106 Miscellaneous Services Subhead 789 Additional commitments in order to assist towards HMG's efforts in the Gulf.

/Urgency

Jo

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