TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 105

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(iii) The figure of £71⁄2 m. per annum represents

(iv)

(v)

an increase of 50 per cent over the

existing contribution, a substantial one

by any yardstick.

On the basis of the Colony's current

annual estimates of revenue and expendi-

ture Hong Kong is devoting 12.25 per cent

of its total annual expenditure (capital

and recurrent) to defence and internal

In terms of recurrent

expenditure only, the figure is 15,35 per

security measures.

cent.

Unless we are prepared to accept the con-

sequences of a first class political

crisis in Hong Kong, we cannot use the

official majority in the legislature to

force through acceptance of a contribution

greater than that which Unofficial Members

of the Council are prepared to accept.

The Governor puts this figure at a

maximum of £71⁄2 m.

(vi) Relations between HMG and the Hong Kong

Government today are at a low ebb, partly

because of a continuing conflict/of

interests in the sphere of international

trade; and partly because of a series

of events which Hong Kong has regarded

as blows directed against its trade and

finance (the devaluation of sterling in

November 1967; the UK import deposit

scheme of 1968; and the decision by HMG|

to impose a/tariff on cotton textile

imports from the Commonwealth in 1969).

In addition, there is a strong feeling

in the Colony EXEİXݤ that HMG tend to

make use of the Colony even to the extent

of sacrificing Hong Kong interests to

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