TNAG-0307-FCO40-343-Costs-of-extra-services-provided-by-armed-forces-of-UK-in-Ho-1971 — Page 26

Reference

16

of someone alte, IL

Mr Stephenson (Finance Department CH505)

Ste

HONG KONG: COST OF EXTRA SERVICES PROVIDED BY HM FORCES DURING THE 1967 DISTURBANCES

1.

at 1

2.

I am replying to your minute of 29 November

I am not sure whether, when you wrote your minute, you were aware of (8) on HWB 10/16 attached. As long ago as October 1967 we informed the Ministry of Defence in writing that we agreed that the cost of the Snake fence, or any part of it, was not a proper charge on defence votes since it was in the nature of an immigration control measure. There is therefore no question of approaching the Ministry of Defence on the subject and since the Snake fence is by far the largest item of the three outstanding matters, it is the crux of the whole problem. I feel that if only we could get Hong Kong's agree- ment to meet the cost of this particular item, we should stand a fair chance of persuading the Ministry of Defence to withdraw the other items.

If Hong

Kong does not meet the cost of the Snake fence, then it seems quite clear that it will need to be met from FCO funds, albeit supplemented if necessary by the voting of additional funds for the purpose.

3. Your paragraph 2. The trouble is that Hong Kong have no further ammunition. They will probably make play with the idea that it will be impossible to obtain the funds from their Financial Committee and Legislative Council (on both of which bodies Unofficial Members are in the majority) without imposing a decision to vote funds by use of the reserve powers. Such a step would almost certainly lead to trouble in the Colony, coming as it would so soon after the very difficult negotiations which have just been concluded on the subject of the defence contribution.

4.

Your paragraph 3. As explained in paragraph 1 above, there is no possibility whatever of the MOD agreeing to accept any part of the cost of the Snake fence on their votes. They would undoubtedly expect the FCO,/to make up any shortfall in the Hong Kong contribution.

A

5. Your paragraph 4. I do not think that the posi- tion in relation to Hong Kong is on all fores that of the Bermuda situation. For one thing, Bermuda is internally self-governing whilst Hong Kong is a Crown colony in the fullest sense. For another, as explained above we have already told the MOD

/that