BRIEF FOR SECRETARY OF STATE
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Discussion with Sir Robert Black
THE HONG KONG DEFENCE CONTRIBUTION
There are two issues involved:
(1) The size of the contribution
(2) The payment of the contribution for 1957/58.
(1) The size of the contribution.
In February 1957 the Defence Committee invited the Colonial Cffice to examine the possibility of Hong Kong increasing their annual contribution of £1 million towards the cost of the garrison. The Governor's views have been that the amount of the contribution should be discussed in the light of the reduction in the size of the garrison and the absence of assistance from Her Majesty's Government towards the refugee problem; this has been strongly supported to other departments by the Colonial Office.
Discussion has centered on the following points: (a) whether the long term garrison of six major
units should be temporarily increased by one or two further major units (the R. A. regiments) and
(b)
whether Hong Kong should continue to pay a contribution of £1,000,000 plus the excess cost of maintaining any additional units in the
Colony over and above the cost of maintaining them in the United Kingdom.
The question whether additional units should be located temporarily in Hong Kong and, if so, who should pay for them, is the subject of the recent exchange of minutes between the Minister of Defence and the Secretary of State.
(2) The payment of the 1957/58 contribution.
The Hong Kong Government have informed the War Office that no payment can be made in respect of the current year while the size of the contribution is still under discussion. The War Office and Treasury have protested vigorously on the questionable grounds that the payment for this year was agreed by the Governor in person in Defence Committee on 23rd July, 1957
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