(139) on DEF.75/51/02

Page 262

(133)

Hong Kong made a satisfactory financial

Page 262 At the Defence Committee meeting

contribution.

in July 1957, at which the Governor of Hong Kong

stated the case from the local point of view, the

question of cost was further discussed, but no

decision was reached.

7.

It is understood that the Army Council

would be agreeable to the stationing of these two

artillery units in Hong Kong if a satisfactory

financial settlement could be arranged, and it is

on the latter point that negotiations are at

present held up.

8.

The attitude of the Hong Kong Government

is that the size of the garrison when the Colony's

defence contribution was fixed at £1 million was

far greater than is now proposed, even with the

If this addition of the two artillery units.

contribution is to be increased by the cost of

the units (approximately £250,000 a year each)

the Governor will have to go to Legislative

Council for additional funds. In addition to

the point made above, Legislative Council is

acutely conscious of the fact that Hong Kong

has been left to bear unaided the very

considerable burden of the re-settlement of

refugees, and the Governor is very doubtful as

to whether he would be able to persuade

unofficial members of Legislative Council to

agree to make the addition.

the Governor feels that it would create such a

If they did agree,

If

bad and lasting impression against H.M.G. that

the effects would be permanently serious.

they did not agree, the Governor could only get

the money by using the official majority in

Legislative Council, and this would only be done

after a debate in which things said

/which

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