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5.
If the Commonwealth Secretary speaks first_7.
I agree with the Commonwealth Secretary that the part
of the memorandum dealing with the apportionment of costs
is unsatisfactory. I do not quarrel with the inter-
departmental rule on the subject in general but only with
its relevance in this particular case. In the context of
Hong Kong a distinction between external defence and internal
security is arbitrary and in my view unrealistic. There can
be no doubt that if the Chinese wished to take over Hong Kong
they would do it by deliberately creating an internal security
problem, rather than by direct attack. Any distinction
between the internal and external threat is therefore
questionable in a way that would not be true, for instance,
of a remote island not immediately adjacent to a hostile
power.
6.
It has always been my understanding that one of the
criteria used in apportioning the defence costs of Hong Kong
was the ability of the Colony to contribute according to its
means. I believe we should maintain this position. If it
is thought that the Defence Vote should not bear the difference,
then I suggest we should consider setting up a separate Vote
to cover the Hong Kong case, which is unique. It is diffi-
cult to think of any other Colony where an external threat
to our position is likely to be realised by internal subversion
rather than by direct attack. Moreover, Hong Kong is the only
Colony where the normal method of removing the causes of
internal subversion, namely a democratic advance to independence,
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