Simplex

FROM HONG KONG (Sir A. Grantham)

TRIGHAL

D*:

D. 15th November, 1957.

DEF/51/02

R. 15th

11

16.00 hrs.

PRIORITY

TOP SECRET (Restricted circulation) No.983

Addressed to S. of S. Repeated

11

Commissioner General Singapore

BIGOT No.204

(S. of S. please pass).

Your telegram No.1148.

It would seem that what Hong Kong is being asked to do is to pay defence contribution of one million pounds per annum for a considerably (and indeed dangerously) reduced garrison and then to pay in addition the cost of two units which would still leave the size of the garrison well below what it was before the contribution was fixed at one million.

2.

The background to this thinking in London seems to be that H.M.G. is in Hong Kong from altruistic motives for the benefit of the inhabitants of Hong Kong who should be duly grateful (and should pay for) any assistance given by H.M.G. to protect the Colony. Whereas in fact H.M.G. is in Hong Kong primarily for H.M.G.'s purposes.

3.

Any additional defence contribution would have to be voted by Legislative Council. I might (repeat might) be able to persuade Unofficial Members of Legislative Council at a confidential discussion to agree with what is proposed but even if they agree it will create a bad and lasting impression against them, the more so as some of them have already noticed that the United Kingdom delegate at the recent United Nations debate on Chinese refugees in Hong Kong stated that H.M.G. would"continue to do its utmost" and that so far the "utmost" has been precisely nil. Is it in H.M.G.'s interest to turn sour the Unofficials (who are leading members of the community). for the sake of £330,000 (see paragraph 3 of my telegram No.463) or £500,000 for a few years, for I must press strongly for the regiments.

173 DEF 75/51/5.or

4.

If the Unofficials at the confidential discussion say "no" then there is nothing to be done because the only way then of getting the money would be by using the Official majority in Legislative Council with all the Unofficials voting against and saying in open debate things that would shake H.M.G.'s position here to the foundations. I would infinitely prefer to forgo the two regiments much as I need them than for this to happen,

as I am sure you would too

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