TNAG-0041-FCO40-77-Future-Sovereignty-of-Hong-Kong-Defence-Review-Working-Party-1967 — Page 112

51's 1966 exports to the U.S. (£127 m.) amounted to one fifth of our experts to

that market.

large domestic market, on tie competitiveness of Hong Kong's products in the world markets where it facea increasing restrictions. The Colony's total trade topped £1,000 m. in 1966 and it is now No. 25 in the list of the world's trading countries,, But, without netural resources of any kind (other than its excellent harbour), its economic base is narrow and brittle;

it is vagy malnorable to any downward trends in world trade, and any loss of confidence in the colony's future on be part of outside investors would quickly affect the supply of capital on which its economic

ezistence depends.

attack

The Colony is indefensible against a major

role of the British garrison (with

Chins.

a planned strength of 5} major units) is to identify

Aggression and to maintain internal security. It would need to be reinformed by two iɛfɑntry battalions to

and widespread

meet a serious/internal security threat. hile there are no purely domestic fastors that gija rise to serious oncern, the vulnerability of the Colany to pressurOS China in itself raises an internal security threat of some magnituds. Hong kong ankos a defences contribution

to the cast or maintaining the British garrison and in all some 13% of its annual expendă ure is spent on defence and internal security measures (inclusing the local polion

and defence forces).

Hong Lane's value to Britein

There is significant (although not quentified)

5.

British investment in Hong Kong,

Colony is used by

many British concerns as a bass for their trading sotivities

in the Par Zest ar for the distribution of their products.

164