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CONFIDENTIAL

go up to £20 million. Last year it had

been £15 million.

(major There were no administrative

right

problems: the new pay scales were all plady.

He had drawn the attention of Mr. Hattersley

of improving

to the ways

conditions, which were

not as good as for the troops in Singanore,

for instance.

There was a housing problem

as in the rest of the Colony.

There was

very little military crime. The main

problem was political to give the public

confidence in the defence forces. The

authorities tried to play down the new defence

arrangements that the Pritish Government were

adopting in Asia.

22.

When asked about mixing with the local

population Sir Pasil Eugster said it was

difficult to arrange this though efforts were

When asked about the Gurkhas he said

made.

that they presented no problem but arrange-

spend beet:

would have to be made for them to tisome

3 outside

time out of the Colony if they were

permanently stationed there.

Zir David Trench pointed out that the

over the main problem with defence contribution was

of presentation.

23. Mr. Stewart asked whether there were

other points which anyone wished to raise

with the Pritish Government.

24.

Sir David Trench said that in general

there was not as much trust as there should be

in the OK, amongst Hong Kong people

between the two Governments."

Λ

There were

many pinpricks. Of coursethe good things

did not attract attention. Put basically

confidence in Britain's friendship towards

Hong Kong was not good.

Jocal people felt

/that the

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