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Defence Contribution
Nature and Volume of Trade
900 strong of whom approximately one third are Europeans.
The reliability of these forces could not be depended upon if
Coubt arose about British intentions and ability to retain
control of Hong Kong or if disorders occurred after a
prolonged period of subversion.
23.
The Colony has paid an annual cash contribution to
Imperial Defcnce since 1863. In 1958 this was fixed at
£1. per annum. Under the current agreement (which was
negotiated in 1966) the Colony pays £5m. per annum. The
defence contribution has always been a sensitive issue in
our relations with on Kong since the Colony has been the
only dependent territory to have made regular and substantial
payments; and the 1966 negotiations were carried through by Mr. Fred Lee (then Secretary of State) with great difficulty.
The current agreement expires in Karch, 1971, and we are
already in correspondence with the Governor preparatory to
opening negotiations for a new agreement.
TRADE AND INDUSTRY
In
24. Hong Kong's prosperity prior to 1950 rested on the
entrepot trade, principally with China. With the advent of
a Communist Government in China this trade dwindled rapidly
and in its place industry has assumed a dominant role.
1949 Hong Kong's total trade (imports and exports) was
£317m: in 1969 it was £2,011m. Since Hong Kong has to
export to live it has long been the policy of the Government
to maintain free entry for all goods from abroad other than
a few items on which there is a tariff for revenue purposes.
/ 25. ...
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