TNAG-0301-FCO40-337-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 73

CONFIDENTIAL

for the next five years. In these latter talks, with the

agreement of the Treasury and the Ministry of Defence, we

are seeking £8.5 million a year from Hong Kong over a period

of five years as a contribution towards the costs of maintaining

British armed forces in the Colony. The Governor considers that

one of the main reasons for the lack of progress so far in

the negotiations has been the resentment of which I know you

are aware, that has accumulated over a period of years regarding

actions by H.M.G. which have appeared to disregard Hong Kong's

needs, rights and vital interests.

If we decide that we cannot give temporary relief from

the new tariff, the Governor of Hong Kong is certain to find it even more difficult to secure the agreement of the unofficial

members of his Legislative Council to the proposed contribution

towards the cost of keeping H.M. armed forces there.

I therefore very much hope that you will feel able to

reconsider Michael Noble's request in the light of the factors

I have set out above. I am sending him a copy of this minute.

(ALEC DOUGLAS-HOME)

4 May, 1971.

CONFIDENTIAL