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Para. 6 (180) Para of (E/190) Part. 4 of (193)

(207)

Meeting on the 6th August 1957) "We support

Governor in his view that in the short term the

locating of two Artillery Regiments in H ̧ng Kong

until accommodation is available in Malaya would

have a most valuable psychological effect and

would help to maintain internal security." HONG KONG? ARODOJALS

4.

The proposal to increase the garrison by

two artillery units which form part of the long-

term Order of Battle in Malaya, but for which

accommodation will not be available for five

years, was made by Sir Alexander Grantham, was

supported by C.B.F., Hong Kong, and has been

repeated by the new Governor

("the presence

/

of the two additional units is of the utmost

( Aumes B).

importance to Hong Kong") It is supported by

the Secretary of State for War and the Foreign

Secretary.

The only point outstanding is that

of cost. This is £250,000 each per annum,

plus £100,000 capital expenditure in accommodation,

as stated in paragraph 2 of D(58)1.

5.

The Governor's difficulty in meeting this

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cost is that it would be looked upon as an

attempt to increase his present defence contribu

tion of £lm. at a time when the garrison was in

fact being reduced.

unreceptive

The attitude of the

unofficials in Hong Kong to this is influenced

by the fact that the Colony has been left to bear,

unaided by H.M.G.,the burden of resettling

700,000 refugees. In the circumstances, the

does not think that

Governor is-doubtful whether he can maintain his

present defence contribution, let alone increase

it. The contribution for this year has not yet

been paid.

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16.

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