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Defence Contribution
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900 strong of whom approximately one third are Europeans. The reliability of these forces could not be depended upon 17 doubt arose about British intentions and ability to retain
control of Hong Kong or if disorders occurred after a
prolonged period of subversion.
The
23. The Colony has prid an amual cash contribution to
Imperial Defence since 1863. In 1958 this was fixed at £lým. per annum. Under the current agreement (which was negotiated in 1966) the Colony pays £5m. per annum. defence contribution has always been a sensitive issue in our relations with long Kong since the Colony has been the only dependent territory to have made regular and substantial payments; and the 1966 negotiations were carried through ty Mr. Fred Lee (then Secretary of State) with great difficulty. The current agrcement expires in March, 1971, and we are already in correspondence with the Governor preparatory to
opening negotiations for a new agreement.
FRADE AND INDUSTRY
AT
24. Hong Kong's prosperity prior to 2950 rested on the entrepot trade, principally with China.
With the advent of
In
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 1989 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
Which there is a tarift for revenue purposes.
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